Annual Report 2015

Transcription

Annual Report 2015

ANNUAL REPORT 2015
2
REPORT OF THE BOARD OF DIRECTORS
3
Aviation and defence industry in 2015
4
AEROSTAR, a pole of aeronautical development
5
7
AEROSTAR, a great investor during the year 2015, summary in figures
Important events of the year 2015
9
Declaration of the General Director
Year 2015 for AEROSTAR, a year of modernisation and investments
10
11
15
AEROSTAR and the shareholders
Important event after the end of the financial year 2015
AEROSTAR administration. Corporate Governance
AEROSTAR in relation with the capital market institutions
16
The mission, present and future
17
The future has already begun!
18
Value and competitiveness on the market
19
AEROSTAR Business
In the field of civil aviation
20
AEROSTAR Business
In the field of defence, expertise of tradition and new challenges
21
The Centre of Excellence for Airbus A320 and Boeing 737 maintenance
22
Commercial and logistics, more integrated
23
Investments and innovation, sustainable development, continuous digital change
24
We deliver quality, we provide a cleaner environment
Aspects related to the Quality and Environment Management System
25
SUSTAINABILITY.
From the workforce in the industry, to the growth of talents
26
Tangible Assets
27
Internal Control System
28
Risk Management
31
In the future, we will continue the modernisation
32
Commitment for good practice in corporate governance
(The Statement on the Compliance with the Code of Corporate Governance)
33
INDIVIDUAL FINANCIAL STATEMENTS
34
INDEPENDENT AUDITOR’S REPORT
71
DECLARATION OF AEROSTAR MANAGEMENT
72
DISTRIBUTION OF THE PROFIT 2015
ANNUAL REPORT 2015
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for the financial year 2015
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AEROSTAR S.A.
AVIATION AND DEFENCE INDUSTRY IN 2015
The effects of declining oil prices impact on the
aviation and defence industry.
The reviews for the year 2015 have highlighted
the increasing geopolitical turbulences, the
development of cross-border demographic
phenomena and crises of a new type, difficult
to anticipate.
The “Geography lesson” in the aerospace
industry “taught” during the year 2015 shows
paradigm shifts: Airbus began to build A320
aircraft in Alabama and Boeing announced
plans to deliver B737 aircraft from China,
even if the production systems of the two
global players have not undergone significant
changes.
The global supply chains are preparing to build
a combined number as high as 120 aircraft,
A320 and B737, per month, by the end of the
decade.
Additional manufacturing capacities are
needed to support the growth potential in
commercial aviation and firm actions to ensure
the infrastructure, stability and talents that the
industry needs.
In the defence industry, the synergies with the
aviation industry, security and cyber security
raise to a new level the requirements for
interoperability and cost effectiveness.
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AEROSTAR, A POLE OF AERONAUTICAL DEVELOPMENT
AEROSTAR S.A. Bacau is a Romanian legal person acting as an open shareholding
company in accordance with its Constitutive Deed and the applicable regulations.
According to the classification of activities in Romanian economy, the main object
of activity is the manufacture of aircraft and spaceships - Code CAEN 3030.
The main filed of activity is production.
Aerostar is number 1 in Romania for its object of activity.
▪
Number 1 in aviation manufacturing
▪
Number 1 in maintenance of civil aircraft
▪
Number 1 for the solutions supplied in the field of aero & ground defence systems
Aerostar is a regional leader in these market areas.
Aerostar’s footprint in the global aeronautical manufacturing programmes is
significant.
Since its establishment to date, AEROSTAR has operated in conditions of continuity
in the aviation and defence industry.
During the year 2015 there was no merger or significant reorganization of
AEROSTAR or the companies under AEROSTAR’s control.
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AEROSTAR, A GREAT INVESTOR DURING THE YEAR 2015
SUMMARY IN FIGURES
AEROSTAR SA has prepared and published the financial statements for the year 2015 according to
the international financial reporting standards (IFRS).
Share Capital
Turnover
- export sales
Expenses for investments
Total employees, of which:
- own employees
- employees from temporary labour agent
Total gross profit (before taxes)
Net profit
General liquidity
thousand lei
thousand lei
thousand lei
thousand lei
No.
No.
No.
thousand lei
thousand lei
-
31.12.2015
31.12.2014
48,729
329,764
253,084
33,396
2,012
1,792
220
55,554
52,268
4.12
48,729
261,051
183,846
12,144
1,868
1,738
130
25,001
19,744
3.07
year 2015
year 2014
“AEROSTAR” (ARS) SHARE
Stock Exchange symbol “ARS”
number of shares
No.
152,277,450
152,277,450
nominal value per share
net profit per share (EPS report)
lei
lei
0.32
0.343
0.32
0.147
market value per share at the end of the period
lei
2.720
1.850
stock exchange capitalisation
lei
414,194,664
281,713,283
MACRO-ECONOMIC INDICATORS
MU
%
2015
0.99%
2014
0.83%
Average exchange rate EURO/12 months
lei/euro
4.4448
4.4446
Average exchange rate USD/12 months
lei/USD
4.0038
3.3475
Average exchange rate GBP/12 months
lei/GBP
6.1224
5.5115
Inflation
2
ANNUAL REPORT 2015
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FINANCIAL POSITION
thousand lei
• Immobilized assets (net values)
31.12.2015
• Circulating assets
• Share capital
• Company own capitals
• Total liabilities
31.12.2014
150,744
129,667
202,055
170,449
48,729
48,729
181,519
142,799
67,564
67,855
TURNOVER DISTRIBUTION BY MAIN PRODUCTS AND SERVICES IN 2015
(thousand lei)
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Aviation Products mnfg
25
40
60
80
100
120
134,238
128,629
Civil MRO
67,670
46,648
Defence Systems (aero,
ground, integrations)
103,741
75,484
Other Products &
Services
24,115
10,290
2014
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2015
Important events of the year 2015
The ordinary general meeting of Aerostar
shareholders held on April 23rd 2015 approved
the distribution of the amount of 13,552,693 lei
from the profit of the year 2014 for dividends,
which corresponds to a gross dividend per share
of 0.089 lei.
▪
In
December
2015
the
project
“Consolidation
and
sustainable
development of the machining and
painting sectors through performant
investments” was successfully completed,
a project co-financed by the European
Regional Development Fund, based on the
financing contract signed with the Ministry
of European Funds – the Management
Authority for the Sectoral Operational
Programme “Increase of Economic
Competitiveness” - Priority Axis 1 “An
innovative and eco-efficient production
system”, Operation 1.1.1 b) Support for
conoslidation and modernization of
the production system by tangible and
intangible investments in large enterprises.
The project was implemented during the
timeframe 25.03.2015 – 24.12.2015, at the
premises of AEROSTAR SA, 9 Condorilor
street, Bacau city, Bacau county.
The total value of the project was of 22,607,246
lei, of which the financial non-reimbursable
grant is 8,477,250 lei:
European Union contribution:
7,290,435 lei
Romanian Government contribution: 1,186,815 lei
▪
Start the delivery of parts and components
for the BOEING supply chain
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AEROSTAR S.A.
DECLARATION OF THE GENERAL DIRECTOR
Year 2015 for AEROSTAR, a year of modernisation and investments
AEROSTAR has been building into a pole of
aeronautical development.
The challenges encountered by Aerostar were
multiple while going from the position of
a supplier for the Romanian market to the
development of an identity and significant
footprint on the international market.
Currently, Aerostar is in a new stage of
the competition game, which takes over
the paradigm shifts occurring at global
and regional scale, as well as the elements
associated to the environment in which we
operate.
All along this process, we have relied on the
trust of our customers and business partners.
For Aerostar, 2015 was another year of
modernisation and investments.
The results of the year 2015 demonstrate
further on the success of the organic growth
programmes, of modernisation, technological
and organizational development.
The total revenues made in 2015 are 351,842
thousand lei.
The investment expenditure was a total
of 33,396 thousand lei, that is 10% of the
turnover achieved. The maturity test of these
investments is to materialize in the successful
bringing of fruits.
The exports represent over 77% of the
turnover of the year 2015 and cover a market
of great diversity and extent.
The net profit of over 52 million lei, in
substantial increase compared to the previous
year, by returning to the company, is going to
provide most of the growth resources which
the company needs.
The growth strategy which we adopted
in Aerostar, which has been successfully
implemented in practice, in a consistent and
predictable way, was reconfirmed this year and
brings satisfaction to all the involved parties:
customers, employees, shareholders.
Aerostar is now a more competitive company,
more cost effective, with modern technologies
and improved maturity in terms of market
opportunities capitalization.
Aerostar is a significant supplier in major
programmes and holds the strength and
competence to manage the risks associated
with the business growth.
The objectives set for the present, as well as
for the future, pursue the modernisation of
the production systems, of the management
systems for production and business, for
organizational development, aligned with the
evolutions in the world industry.
We will continue the investment programmes
and we will streamline our business flows to
the highest standards of our Customers.
Grigore FILIP
President- General Director
ANNUAL REPORT 2015
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AEROSTAR and the shareholders
AEROSTAR is a private company, listed at Bucharest Stock Exchange since 1998.
Aerostar Shares are nominative, ordinary, of equal value, issued in dematerialized form and identified
by registration in the Register of Shareholders. This is under the administration of Depozitarul
Central S.A. Bucharest.
According to the records available at Depozitarul Central S.A., the share issuer AEROSTAR S.A. is
registered with the following data:
Individual Identification Number 950531,
ISIN code ROAEROACNOR5, stock exchange symbol ARS.
The share capital of the company is 48,728,784 lei, a total number of 152,277,450 shares,with a
nominal value of 0.32 lei.
The main shareholders are S.C.IAROM S.A. Bucharest and SIF MOLDOVA S.A.
There is a further large number of shareholders, natural and legal persons, holding stock below the
significance threshold as defined in the regulations of the National Securities Exchange Commission
- currently the Financial Supervisory Authority, and of the Bucharest Stock Exchange.
The General Meetings of Shareholders were held in full compliance with the provisions of the
Companies Act- Law no. 31/1990, the law no. 297/2004 regarding the capital market and the
applicable regulations issued by the National Securities Exchange Commission- (currently the
Financial Supervisory Authority), as well as with any other applicable legal provision.
The general meetings of the shareholders were held on 23 April and 10 December. They were
convened and held according to the legal and statutory provisions.
During the years the company has distributed dividends to the shareholders and has consolidated a
dividend policy which provides satisfaction to the shareholders as well as the resources needed for
the development of the company.
The company did not buy its own shares and did not issue securities or other bonds during the year
2015.
The dividends distributed from the profit obtained in the financial year 2014 were paid to shareholders
starting from 23.10.2015, through Depozitarul Central.
Important event after the end of the financial year 2015
The Board of Directors of Aerostar S.A. decided to extend the timeframe for the payment of the
dividends of the financial year 2014 until the date of 31.12.2016; the date initially set was until
23.04.2016.
Also, starting with the date of 10.02.2016 until 31.12.2016, Depozitarul Central will make the payment
of the dividends not collected by the shareholders for the financial years 2012 and 2013.
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AEROSTAR, mode of administration
AEROSTAR administration is made in unitary system, with the legal obligation to delegate the
management of the company to one or several directors.
The Board of Directors of AEROSTAR comprises five members, elected in 2012, for a period of
4 years.
Members of the Board of Directors
TONCEA MIHAIL NICOLAE
Member
of the Board of
Directors
– engineer –
DAMASCHIN
DORU
Vice-president
of the Board of
Directors
– economist –
FILIP GRIGORE
President
of the Board of
Directors
– engineer –
NIJNIC MARIN ILIE
VIRNA DANIEL
Member
of the Board of
Directors
– engineer –
Member
of the Board of
Directors
– legal adviser –
The direct participation of the Directors to the share capital of the company is below 1%.
Mr. Filip Grigore was appointed President of the Board of Directors and General Director.
Mr. Damaschin Doru was appointed Vice-president of the Board of Directors and Financial Director.
There is no agreement, understanding or family tie in connection with the appointment of the
company’s Directors.
They delegate attributions to the executive management of the company.
ANNUAL REPORT 2015
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In 2015 the executive management of the company was:
Item no.
Name
Position
1.
FILIP GRIGORE
General Director
2.
DAMASCHIN DORU
Director, Finance-Accounting
3.
POPA DAN PAUL MALIN
Director, HR & Industrial Engineering
4.
FILIP ALEXANDRU
Quality Director
5.
VLAD GABRIEL REMUS
Director, Logistic Division
6.
ARHIRE SILVIU EMANUEL
Director, Special Products Division
7.
BUHAI OVIDIU
Director, Aviation MRO & Upgrades Division
8.
IOSIPESCU SERBAN
Director, Aeronautical Products Division
9.
PLACINTA THEODOR
Director, Utilities & Infrastructure Division
The direct participation of the executive management members to the share capital of the company
is also below 1%.
There were no act of resignation or dismissal among the members of the Board of Directors, of the
executive management or of the auditor.
There is no litigation between the company and its Directors or persons of the executive management
of the company in connection with their activity.
None of the Directors in the Board or the management members were involved in a litigation or
other administrative proceedings with AEROSTAR over the last 5 years.
During the year 2015 the Constitutive Deed of the company was not modified.
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AEROSTAR S.A.
Corporate Governance
As a company listed on Bucharest Stock Exchange, AEROSTAR S.A. pursues the compliance with
the principles and recommendations set forth in the Corporate Governance Code of the Bucharest
Stock Exchange adopted on September 11, 2015.
At the same time, the Corporate Governance System of AEROSTAR S.A. is in accordance with the
provisions of the Constitutive Deed of the company and complies with the provisions of the Laws
no. 31/1990 and 297/2004, as amended and supplemented, Regulation no. 6/2009 of the National
Securities Exchange Commission.
The Board of Directors of AEROSTAR S.A. pays special attention to the observance of the corporate
governance principles in order to ensure:
▪
To achieve performance subject to the sustainable development of the company;
▪
Accuracy and transparency of the decision-making process of the company;
▪
Respect for the rights and fair treatment of shareholders by protecting and implementing their
prerogatives in practice;
▪
Transparency and access to information by regular publishing of the relevant financial and
operational information.
The details regarding the conformity with the principles and recommendations provided in the
Corporate Governance Code of the Bucharest Stock Exchange are shown in the „Comply or Explain”
Statement, which is an integral part of this annual report.
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Corporate Governance Structures
1.
The SHAREHOLDERS – the General Meeting of Shareholders
2.
The Board of Directors
3.
The Executive Management
The shareholders exercise their rights in the General Meeting of Shareholders („GMS” or „General
Meeting”), which is the highest decision making body of AEROSTAR S.A.
The Company’s shares are indivisible and provide equal rights to the holders, each share giving the
right to one vote in the General Meeting of Shareholders.
The General Meetings are convened by the Board of Directors at least 30 days before the set date.
The General Meetings are ordinary and extraordinary. The Ordinary General Meeting is held at
least once a year, in maximum 4 months after financial year’s end while the Extraordinary General
Meeting is held whenever necessary.
In order to provide equal treatment and full and fair exercise of the rights of the shareholders,
the Company makes available all the relevant information with reference to the GMS and the
resolutions adopted both in the regular media (national newspaper, reports by FSA and BSE) and
in the special section „Investors Relation” opened on company’s website, easily identifiable and
accessible.
AEROSTAR S.A. does its best efforts in compliance with the legal requirements in the field, to
facilitate the participation of the shareholders in the General Meetings, as well as for the full
exercise of their rights. The shareholders can participate and vote in the General Meeting, but also
have the possibility to vote by proxy or by correspondence.
The General Meetings of Shareholders are presided by the President of the Board of Directors, thus
allowing an open and effective dialogue between Directors and shareholders.
Each share of the company held by a shareholder on the „record date” gives the right to receive
dividends for the previous financial year, in the amount and terms set by the General Meeting of
Shareholders.
The competences for approval of the General Meetings of Shareholders, the conditions for
organizing and validations of the meetings are set out in the Constitutive Deed of the Company,
according to the applicable legal and regulatory framework.
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AEROSTAR in relation with the capital market institutions
In 2015 as well, AEROSTAR fulfilled all its reporting obligations arising from the legal provisions
by publication of the current and periodical reports in the electronic system of the Financial
Supervisory Authority and of the Stock Exchange, on the company webpage and by press releases.
The shareholders can obtain information on AEROSTAR from the company’s webpage
www.aerostar.ro such as the main events; also, the annual, half-year and quarterly reports
can be downloaded for the last five years, as well as the current reports and other useful
information for the shareholders.
The trading price of an AEROSTAR share fluctuated in 2015 between a minimum level of 1.67 lei
and a maximum level of 3.25 lei.
Comparative evolution of average monthly price of Aerostar shares
on 12 months 2015 – symbol “ARS”
3.50
3.00
2.50
2.00
1.50
1.00
average monthly price 2015
0.50
average monthly price 2014
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ANNUAL REPORT 2015
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AEROSTAR Mission, present and future
The economic enterprise “Uzina de Reparatii Avioane” (Aircraft Repair Factory), is the forerunner
of today’s AEROSTAR S.A.
It had the successive names: URA-1953, IRAv (Intreprinderea de Reparatii Avioane)- Aircraft
Repair Enterprise- 1970, IAv (Intreprinderea de Avioane)- Aircraft Enterprise- 1978 and since 1991
is registered as a shareholding company with fully state-owned capital, under the present name
AEROSTAR S.A.
Since the year 2000 the company is fully private, with the shares traded at Bucharest Stock Exchange,
stock symbol ARS.
In the conditions generated by Romania’s accession to NATO and European Union, Aerostar’s
mission ensures the company’s development in the global economic environment.
The present mission continues the mission set at the foundation of the company and focuses on three
business lines, all in aeronautics and defence:
▪
Maintain the status of supplier in the field of aviation and ground defence systems for the
Romanian Ministry of National Defence and for other beneficiaries, a field of activity whereof to
generate over 20% of the turnover.
▪
Consolidation of AEROSTAR’s position as supplier of parts, aerostructures, subassemblies and
equipment for the commercial and general aviation, such as to become a major subcontractor
for the globalized aviation industry and to generate from these activities over 55% of the
turnover.
▪
Consolidation of AEROSTAR’s activities as a prime supplier of maintenance for civil aircraft
and for conversion/ upgrade of civil aircraft, a field of activity whereof to generate over 20% of
the turnover.
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The future has already begun!
In 2015 AEROSTAR’s main lines of business are:
▪
Manufacturing of aeronautical products
▪
Maintenance of commercial aircraft
▪
Aero & Ground Defence Systems, production and integrations
AEROSTAR has developed the capabilities and technologies required by the market and achieved
increased performance indicators on the line of competitiveness and reactivity to market demands.
This positioning is based on AEROSTAR’s growing contribution in the supply chains of the two
dominant global players AIRBUS and, since late 2015, also BOEING, alongside intensive investments
and organizational development stages.
AEROSTAR’s present market profile is characterized by a degree of replacement of the old, traditional
programmes with new programs, of over 85%.
Regarding the production of aviation parts, subassemblies and components, all the manufacturing
programmes are new, from the category of global standing programmes, of volume, on medium and
long term.
Aerostar’s capability offer, structured in a balanced manner in relation to the market needs and
requirements ensures the company’s growing strength in the competitive environment and a
sustainable competitive advantage.
Aerostar successfully capitalizes the investments made in technology, in facilities, but also in
organization and planning.
The business model followed by the company is determined by the Customers’ requirements and the
evolutions on the aviation and defence industry market.
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Value and competitiveness on the market
Aerostar holds advanced capabilities, equipment and technologies, operational in programmes with
a high degree of vertical integration.
The force as a supplier, the adherence to improvement programmes and the reactivity to opportunities
position Aerostar with an important competitive advantage. The development of the agility in the
context of the current global market, is an important gain for the company’s success.
Another component of AEROSTAR’s competitive advantage is the synergy between the development
of technologies in civil aviation with the development of solutions in technologies as requested today
on the defence market.
93% of the sales made in 2015 are in the aeronautical field.
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AEROSTAR Business
In the field of civil aviation
Number 1 in Romania for aviation manufacturing
Aerostar manufactures aviation parts, subassemblies
and systems in the category of aerostructures and
hydraulic systems and landing gears, using advanced
technologies specific to metal processing: aluminum,
titanium, steels, etc.
The increase of the competitiveness is achieved
through integrated investments implemented to
modernize and expand the production capacities,
as well as by establishing a partnership of trust with
the customers to improve the agility at reduced
production time and at minimal risks.
A pillar of the competitive advantage is the
centre for special processes and the introduction
of state-of-the-art practices and standards related to
environment protection.
AEROSTAR’s supply capacity is to remark.
The company produces an annual volume exceeding
4-5 million aluminum parts, achieves over 50-60%
of the total production of subassemblies of
aerostructures or hydraulic systems, in certain
programmes, while for other programmes being sole
source.
Aerostar develops an identity footprint on the jigs
and tooling market for the aeronautical industry.
This covers the production of a range from small to
medium-size, from ground support equipment (GSE)
to assembly and calibration fixtures and jigs. The plan
is to increase the complexity and manufacture devices
with complex hydraulic or electrical actuation.
ANNUAL REPORT 2015
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In the field of defence, expertise of tradition and new challenges
Aerostar provides solutions for products and integrations in the category of aero and ground defence
systems, for the Romanian and foreign market.
Aerostar is a first rank supplier for the Romanian Ministry of National Defence, achieving
continuously the mission and objectives set out at the company’s foundation and updated according
to the current requirements.
The products and services provided in the field of defence are from the traditional portfolio of repairs
and upgrades for the categories of MiG-21 and L-39 platforms, systems and equipment.
Also, Aerostar has built a significant position in the field of IFF radar systems and professional
systems for communications, control and data & information transfer, with various applications.
The expertise in the production and equipment integration of equipment in advanced technologies
places Aerostar’s know-how in the area growth for these new state-of-the-art programmes.
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The Centre of Excellence for Airbus A320 and Boeing 737 maintenance
Number 1 in Romania, AEROSTAR is the main independent MRO supplier for commercial aircraft
in this geographical area.
Aerostar provides base and heavy maintenance for commercial aircraft in the AIRBUS 320 family,
Boeing 737 and BAe-146/ RJ aircraft, as well as for aircraft components.
The dedicated Centre of Excellence supplies routine and complex checks, including structural
modifications for these aircraft types, for a large number of customers residing mainly in the
geographical area of competitiveness for the company.
Starting from the Part-145 approval from the Romanian Civil Aeronautical Authority (AACR),
recognised by the European Aviation Safety Agency (EASA), AEROSTAR’s MRO base has developed
its position on the market by getting an extended range of approvals from the civil aviation authorities
in several EU and non-EU countries.
Aerostar is among the first independent MROs to supply „Split Scimitar Winglet Retrofits” on
Boeing 737 NG aircraft. The competitive advantage is based on the flexibility and effective solutions
to incorporate these modifications in the C-check work packs and the minimization of the aircraft
turn-around-time.
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Commercial and logistics, more integrated
In 2015 AEROSTAR maintained and developed
a solid business base, the new programmes
representing most of the sales volume achieved
in 2015.
AEROSTAR runs its business and commercial
transactions on its own, the same as for
obtaining the licences and authorisations for
the activities undertaken.
AEROSTAR fully observes all the national
and international regulations applicable in
the trade and delivery and, naturally, in the
production of all goods and services in its
supply profile.
The main markets for AEROSTAR sales are:
In the field of import and export operations,
AEROSTAR is an Authorised Economic
Agent to perform customs clearance, security
and safety proceedings as approved by the
Romanian Customs Authorities.
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S.A.
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ani
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Eu
12 months 2015
ia
As
a
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Af
12 months 2014
0%
0.2%
11.6%
15.0%
4.4%
13.2%
54.4%
48.3%
29.6%
Aerostar sales are operated on a global market
of large geographic area in both the civil and
defence field.
AEROSTAR sales in 2015 were 329,764
thousand lei, with 253,084 thousand lei from
exports, covering a wide span of customers,
in a large number of different production
programmes.
23.3%
The company is registered by the Ministry of
Foreign Affairs – Exports Control Department
to perform import and export operations with
military products.
ca
eri
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Investments and innovation, sustainable development, continuous digital change
The largest part of the production capacities
operate with modern technologies and
equipment and this process is ongoing to
strengthen the areas of expertise and the
existing capabilities.
The market dynamics determines the
technological development directions to
follow.
The expenses for the investment programme
made in 2015 were in total of 33,396 thousand
lei, representing 10% of the company’s turnover
in 2015.
The main objectives of the investments made
in 2015 were:
– the set-up of a new production facility, for
which:
▪ An automatic line was acquired for
surface coating of aviation using an
ecological process of tartaric and
sulphuric anodizing (TSA) - a new
electroplating line which does not
use substances containing hexavalent
chromium.
▪ An automatic painting and drying
line, of high productivity, was
–
acquired, which uses water based
paint, the advantages of this process
being the low percentage of volatile
organic compounds (about 5 times
less than in case of oil based paints,
the paint does not sediment and the
coverage power is high).
the purchasing of CNC multi-axes
machine tools
These investments involve the implementation
of modern, ecological state-of-the-art
technologies.
– the investment in information technology
and infrastructure, investments which
have been and remain a priority for
AEROSTAR management.
In the context of the digital economy, where
the digitization plays a major role in increasing
the profitability of the company to the extent
in which the IT technologies influence
the operational excellence, AEROSTAR
management considers that the digital
transformation is part of the business decisions
which reflect the current needs to adapt to the
main digitization services and products.
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We deliver quality, we provide a cleaner environment
Aspects related to the Quality and Environment Management System
The safety of delivery means to deliver quality,
on time and at competitive price for our
customers.
The Quality and Environment Management
System of Aerostar has the role to meet the
requirements of the customers and to ensure
compliance with legal requirements and
applicable regulations.
In the year 2015, with regard to quality,
AEROSTAR maintained the certifications
and approvals obtained from the certification
/ accreditation bodies, from the customers or
other regulatory authorities.
In December 2015 the Quality and Environment
Programme was approved for 2016, which
specifies measurable objectives for 2016, actions
to maintain the performances achieved in the
field of quality and environment protection,
actions for the continuous improvement of
the Quality Management System and of the
environmental performance.
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With reference to the environment protection,
the specific authorizations were maintained,
namely the Integrated Environmental
Authorisation and the Water Management
Authorisation. The number of greenhouse
effect gas certificates consumed during 2014was
validated and and the allocated certificates
were handed-in, while the authorization was
renewed for greenhouse effect gas.
As to the continued compliance with the
requirements of the European REACH
regulation, a dedicated committee was set-up
in Aerostar with synergic actions all along the
entire chain of processes in order to follow and
implement these requirements.
A transition process was initiated in Aerostar
for the new revisions of the standards SR
EN ISO 9001: 2015 and SR EN ISO 14001:
2015 in relation to the integrated quality and
environment management system, a process
which will run until the year 2018.
SUSTAINABILITY.
From the workforce in the industry, to growing of talents
Aerostar is one of the main employers on the
labour market in the North-East region of
Romania and the largest industrial employer in
Bacau county.
At the end of 2015 AEROSTAR had an
effective number of 2012 employees, of whom
220 recruited and made available through the
temporary labour agent.
The company has a rejuvenated employees
structure, balanced in terms of socioprofessional categories, education background
and accumulated experience.
The union membership was an average of
81.22% of the employees in the year 2015.
Other HR indicators as recorded on 31.12.2015
are:
▪ the average period of employment at
AEROSTAR is 17 years
▪ the average age of the employees is 47.
The main objectives related to Human Resource
management during 2015 were achieved, as
follows:
1. The negotiation of a new collective labour
agreement with validity up to 31.03.2017.
The social dialogue, as provided in the Collective
Labour Agreement, consists in frequent
meetings between the company management
and representatives of the representative Union
and/or representatives of the employees, as well
as joint committees, such as:
▪ Joint Social Committee
▪ Health and Labour Safety Committee
▪ Management and Employees’ Committees
for negotiation and follow-up for the
implementation of the Collective Labour
Agreement.
2. Training and professional development
of the employees in accordance with the
Annual Plan for Professional Training for
the year 2015.
3. The implementation of the project
“AEROCALIFICARE - Competitiveness
and Sustainability in the Aeronautical
sector through Innovative Professional
Qualification” in which AEROSTAR was the
beneficiary of training.
The POSDRU (Sectoral Operational Programme
for the Development of Human Resources)
funded project was completed on 15.12.2015.
4. The implementation of the project “Active
occupational measures in the aeronautical
sector by innovative professional training
(AEROTRAINING)” funded by POSDRU
(Sectoral Operational Programme for the
Development of Human Resources), in
which AEROSTAR had the role of National
Partner 1 and coordinator of the project
implementation in the North East Region,
Bacau.
5. The recruitment, selection and hiring of
over 360 persons to increase the manpower
numbers of the company in order to
cover the needs arising as a result of the
development of the ongoing business or
newly identified ones, to replace natural
leaves and manpower fluctuation.
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5
TANGIBLE ASSETS
The production facilities are located at the
headquarters of Aerostar in Bacau, Romania.
The company owns a total land area of 45.33
hectares, with access to the European Highway
E85.
AEROSTAR has direct access to the runway of
“George Enescu” airport of Bacau.
The production facilities of AEROSTAR S.A.
are located at the company’s registered head
office in Bacau, 9 Condorilor Street.
At the registered headoffice there are all types of
facilities required for the proper performance
of the production activities in accordance with
the company’s object of activity.
The production facilities include hangars,
industrial hangars, test benches, as well as
facilities for administrative and social activities.
The company also holds office areas allocated
for technical and economical activities.
All these facilities are properly maintained.
The effective built area is approximately 13.47
hectars.
All the buildings and special facilities are in the
company’s ownership.
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AEROSTAR S.A.
In 2015, the value of tangible assets increased
by 33,385 thousand lei compared to 2014, on
the account of the set-up of a new production
facility, the acquisition of multi-axis CNC
machines and the acquisition of hardware
equipment and software licenses.
The degree of amortization, on the categoriesconstructions and equipment -, such categories
having a significant contribution in the
immobilized assets (84%), is presented as:
Fixed asset
category
Gross
value
(lei)
Amortized Degree of
value
amortization
(lei)
(%)
Constructions
and investment
54,802,808 6,237,086
immobilizations
Technological
equipment and
92,775,026 23,517,947
transport vehicles
11%
25%
During 2015 there were no problems related to
the ownership upon the tangible assets of the
company.
During December 2015 the company acquired
a new land surface situated in Republicii Street,
in Bacau, which may provide, in the future, a
new access road.
INTERNAL CONTROL SYSTEM
The internal control system of AEROSTAR SA
includes the following components:
▪ Control of accounts
▪ Budgetary control
▪ Controlling
▪ Internal audit
CONTROL OF ACCOUNTS
AEROSTAR has a department responsible for
the control of accounts.
This provides the inventory of all the assets,
liabilities and company capitals under record.
The inventory was conducted throughout
the year 2015 respecting the law and internal
regulations.
The results of the inventories were submitted
for approval by the Board of Directors and
recorded in the accounts.
No significant deviations were found compared
to the records.
BUDGETARY CONTROL
The budgetary control is performed by the
budget managers.
In terms of budgets, the company is organized
in:
▪ profit centres
▪ cost centres
There are 19 budgets defined in the company
which support programmes of activities
corresponding to the functions of the company.
The budgetary control ensures:
▪ observe the planned values of each
budgetary indicator
▪ substantiation of possible corrective actions
Quarterly, both the profit centres and the cost
centres report to the executive management
the performance of the budgetary provisions
and the necessary, timely, efficient, effective
and legal character of the costs undergone by
the company.
CONTROLLING
The concept of controlling was implemented
and is under continuous development as
a higher level of the budgetary control in
Aerostar.
Controlling also ensures compliance with
the mission and strategic objectives of the
company.
The controlling ensures also compliance with
the planned cash flows, periodically analysing
the necessity, appropriateness and legality
of the receipts and payments made by the
company.
INTERNAL AUDIT
The internal audit activity in AEROSTAR is
organized according to the law, in a separate
department as provided in the organizational
chart.
The internal audit is reporting directly to the
Board of Directors and is an independent
and objective conformance and consultance
activity, designated to evaluate and improve
the company’s operations.
The company management pursues, by
internal auditing, to ascertain that the internal
control function operates efficiently, effectively
and sufficient to mitigate or to eliminate the
identified risks.
The internal audit activity is structured as
follows:
▪ auditing as to effectiveness
▪ management audit
▪ operational audit
▪ conformity audit
▪ financial audit
The internal auditing activity is performed
according to the Annual Programme approved
by the Board of Directors.
The internal audit submits regular internal
audit reports in the meetings of the Board of
Directors.
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RISK MANAGEMENT
The Risk Management system of AEROSTAR
is complete, integrated into the activity of the
company and the entire personnel has a general
responsibility to identify and report the risks.
The objective of the risk management system
in AEROSTAR is to secure the added, positive
economic value on an average time horizon, by
managing the company’s exposure in terms of
the cash flow.
The strategic risks and the risks of the type of
high potential events are separately monitored.
Part of the specific objectives of the system are
to closely monitor and protect the company
exposure to the liquidity risk, market risk,
credit risk and cash flow risk and to apply
adequate counter measures in order to contain
their effects.
The risk management in AEROSTAR is a
continuous cycle along which all risks (existing
and new) are reviewed, assessed and managed.
The risk awareness, understanding the risk
profile of the company and the ability in the
risk management have improved considerably
across throughout the company.
The risk management consists in the
implementation of practical countermeasures
to reduce the probability of a risk occurrence,
but also of reactive countermeasures to mitigate
the impact of risk.
These measures are done either by transfer
(insurance policies) or by containing the effects
of the risk and retain only the residual risk.
In order to provide an effective process, the
risk management system in AEROSTAR uses a
built-in test process and is audited on a regular
basis by the internal auditor of the company.
The risks which are specific to the aviation
industry:
▪ aviation products
▪ grounding
▪ premises
▪ hangars
AEROSTAR continuously reassesses the
portfolio of existing risks, identifying new
exposures and adding value to the company
by appropriately applying, when necessary, the
best and most effective countermeasures.
which cannot be eliminated or prevented, are
covered by the company through insurance
policies, of proper value.
The risks currently managed by the system of
AEROSTAR are classified by risk categories, in:
The Operational Risk is the risk of loss
occurrence or of failure to make profits at the
budgeted level, a risk which can be determined
by internal factors (inadequate performance
of certain activities, or engineering processes,
HR related issues) or external factors
(economic conditions, changes in the business
environment, legislative changes).
▪ financial risks
▪ strategic and operational risks, including:
• process risks
• project risks
▪ risks related to health, safety and security
including cybersecurity
▪ fiscal risks
▪ conformity risks
▪ manpower risks
▪ risks related to litigations
▪ risks related to regulations
▪ reputational risks
All risks are analysed based on their historical
trends and viability.
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AEROSTAR S.A.
Regarding:
The operational risk management is targeted
to achieve a balance between the prevention of
financial loss and company image impairment,
on the one hand, and increasing the cost
structure efficiency, on the other hand.
The main responsibility for developing and
implementing controls on operational risk
lies with the top management of each division,
responsibility supported by the development of
general standards at the level of the company
for operational risk management.
The Credit Risk is the risk of AEROSTAR
bearing a financial loss as a result of the failure
to meet the contractual business obligations by
a customer.
The credit risk is assessed and administered for
each business partner based on the credit rating
reviews, which also includes the country risk
for the country where the customer operates.
Based on the credit rating, the customers are
allocated a maximum level of commercial
credit (in terms of value and duration), while
revaluations of allocated credit rating and
credit limits are monitored and reviewed on a
regular basis.
In certain cases, specific mitigation tools will
be required (advance payments, letters of bank
guarantee, confirmed letters of credit).
AEROSTAR has no significant exposure
towards a single partner and does not register
a significant concentration of the turnover on a
single geographic area.
A presentation of the quantitative information
regarding AEROSTAR exposure to the
credit risk is detailed in Note 9 (Financial
Instruments) of the Financial Statements.
The Liquidity Risk is the risk for AEROSTAR
to encounter difficulties in fulfilling its debtrelated obligations as they become due.
To assess the liquidity risk, the cash flows from
operations, from investments and from funding
are monitored and reviewed weekly, monthly,
quarterly and annually in order to establish the
estimated level of net modifications of the cash.
Such reviews provide the basis for the financing
decisions and for the capital undertakings.
In order to reduce the liquidity risk, AEROSTAR
keeps an annual cash-reserve in the form of a
Credit Line (usable as an overdraft) granted by
banks.
During the reporting period, AEROSTAR did
not use the contracted credit line of 2,500,000
USD, all the Company’s activities being
financed from own sources.
The Market Risk is the risk that the fair value
or future cash flows of a financial instrument
will fluctuate because of the changes in market
prices.
The market risk includes the price risk,
currency risk and interest rate risk.
The price risk is determined by the possibility
of incurring a loss or failure to obtain the
estimated profits as a result of market price
fluctuations, especially in case of business
agreements concluded for longer periods of
time (over 1 year).
The avoidance or mitigation of the price
risk is made by including in the commercial
agreements of provisions for the annual price
update or by including of a safety margin in
the contract price against the risk of changing
price for the raw materials.
AEROSTAR is exposed to the currency risk as
77% of the turnover is related to USD and EUR,
while a considerable amount of the operational
expenses is related to the operational currency
(LEI).
So, the company is exposed to the risk of the
exchange rate fluctuations, affecting both the
net revenues and the financial position, as they
are both expressed in LEI.
An analysis of AEROSTAR’s sensitivity to
the currency fluctuations is detailed in Note
9 (Financial Instruments) of the Financial
Statements.
During the reporting period AEROSTAR S.A.
did not incur any financial loss.
As far as the interest rate risk is concerned,
due to the fact that AEROSTAR S.A. did not
use the contracted Credit Line during the
reporting period, the cash revenues and flows
are independent from the interest rate variation
on the banking market.
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In the future, we will continue the modernisation
Further on, AEROSTAR will be an organization
focused on its Customers and on growing
the value we bring in the value chain of the
industry.
AEROSTAR is adequately positioned to
continue the growth and modernisation and
our actions are focused on fulfilling in optimal
conditions the objectives set in the development
strategy of the company.
This means the development and expansion of
Aerostar’s market footprint in the manufacture
of aviation products and the development
of the Centre of Excellence for civil aircraft
maintenance.
At the same time, we are firmly acting to
maintain our position on the defence systems
market in the present conditions, in more and
more new programmes.
We will act more intensively to capitalize the
market potential for products and services
in the areas of professional electronics and
jigs & tooling manufacturing for the aviation
industry.
We will continue the thorough processes of
modernisation, which means the development
of the centres of excellence through investments
and continuous improvement programmes;
we will focus on harmonizing the development
both in relation to the specific values of the
aviation industry and the expectations of our
Customers.
In these efforts, we will allocate the necessary
resources, at the necessary level and structure,
to be sure that AEROSTAR is a strong company
which delivers Value to the Customers, which
ensures the sustainability of the investments
and its business, and which is competitive and
profitable, bringing satisfaction for all parties
alike, associated to AEROSTAR BUSINESS,
customers, shareholders, employees, the
community to which we belong.
President of the Board of Directors and
General Director
Grigore FILIP
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A commitment for good practice in corporate governance
Statement on the compliance with the Corporate Governance Code
Code Comply Do not
Reason for non-compliance
Provision
comply, or
partially
comply
A.1
x
A.2
x
A.3
x
A.4
x
Three of the five members of the Board of Directors are non-executive. The Board of
Directors does not comprise an independent member, being voted in this structure by the
General Meeting of Shareholders.
A.5
x
A.6
x
A.7
x
A.8
x
A.9
x
During 2015 there were a total of 8 meetings, of which:
- 6 meetings were attended by all the Board members;
- In one meeting three members were present (One meeting was physically attended by
three members), the other two participated in teleconference mode;
- In one meeting were present two members (One meeting was physically attended by
two members), the other three participated in teleconference mode.
B.1
x
Currently the audit is performed by an internal auditor, certified as financial auditor, who
reports directly to the Board of Directors.
B.2
x
Compliance will be considered together with the election of the new Board of Directors,
in July 2016.
B.3
x
in July 2016.
B.4
x
This activity is currently provided by the President of the Board of Directors.
B.5
x
This assessment is currently performed by the external auditor and the internal audit
dept.
B.6
x
This function is ensured by the President and the Vice President of the Board of Directors.
B.7
x
This function is provided by the Board of Directors. The internal auditor’s reports are
presented in the Board of Directors meetings, being subject to review and approval by
the latter.
B.8
x
in July 2016, and the organisation of the Audit Committee.
B.9
x
B.10
x
B.11
x
B.12
x
The reporting of the internal audit dept. is made directly to the Board of Directors.
C.1
x
All the GSM resolutions regarding the remuneration of the BoD members were published.
Currently there is a separate section in the BoD Regulation.
D.1
x
D.1.1
x
D.1.2
x
The information in this section are available upon request, but are not published on the
company’s website.
D.1.3
x
D.1.4
x
D.1.5
x
D.1.6
x
D.1.7
x
D.2
x
D.3
x
D.4
x
D.5
x
D.6
x
D.7
x
D.8
x
D.9
x
D.10
x
President of the Board of Directors and General Director
Grigore FILIP
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INDIVIDUAL FINANCIAL STATEMENTS
ON 31 DECEMBER 2015
PREPARED IN ACCORDANCE WITH THE
INTERNATIONAL FINANCIAL REPORTING STANDARDS
ADOPTED BY THE EUROPEAN UNION
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INDEPENDENT AUDITOR’S
REPORT
BENEFICIARY:
▪ S.C. AEROSTAR S.A.
HEAD OFFICE:
▪ Bacau, Condorilor Street, No. 9
MANAGEMENT:
▪ GENERAL DIRECTOR - GRIGORE FILIP
▪ FINANCE-ACCOUNTING DIRECTOR - DORU DAMASCHIN
STATUTORY AUDITOR:
▪ S.C. H.M. AUDIT CONTAB S.R.L.
▪ Authorization No. 1019 / 2010
REGISTERED HEAD OFFICE:
▪ Bacau, Ion Luca Caragiale Street, No. 1, bl. 1, sc. D, ap. 12
PLACE OF BUSINESS:
▪ Bacau, Pasajul Revolutiei Street, No. 3
MANAGEMENT:
▪ Financial Auditor - Ec. MONICA HUSANU
CONTRACT no 129 / 15.12.2015
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AEROSTAR S.A.
INDEPENDENT AUDITOR’S REPORT
REGARDING THE INDIVIDUAL FINANCIAL STATEMENTS ON 31.12.2015
1.
Introduction:
We have audited the individual financial statements prepared by S.C. AEROSTAR S.A. („The
Company”), on 31.12.2015, in accordance with the International Financial Reporting Standards adopted
by the European Union, which comprise: the Statement of the Financial Position, the Statement of Profit or
Loss, Other Elements of the Global Result, the Statement of Company Capital Modifications, the Statement
of Treasury Cash Flows, Notes to the Individual Financial Statements. Also attached to this report are the
following documents: the Report of the Board of Directors, the Declaration of the Company Management
in accordance with the provisions of art. 30 of the Accounting Law No. 82/1991 and the Regulation no.
1/2006 issued by CNVM, currently named the Financial Supervisory Authority (”ASF”), the Proposal
for the Distribution of the Net Profit Achieved in the Financial Year 2015, comprising the information
determined in accordance with the IFRS provisions.
The above-mentioned financial statements refer to:
•
Total company capitals ............................................................................ 181,518,081 lei;
•
Net turnover .............................................................................................. 329,763,579 lei;
•
Total net profit ............................................................................................ 52,268,445 lei.
The annual financial statements are prepared under the responsibility of the company management.
Our responsibility consists in expressing an opinion on these annual financial statements, as well as on the
degree of conformity of the Report of the Board of Directors with the annual financial statements, for the
same financial year.
2.
Management responsibility for the individual financial statements
The Company management is responsible for preparing and presenting adequately these annual
financial statements as per the requirements of the Romanian accounting norms, i.e. The Accounting Law
no. 82/1991 (republished), the Order of PFM no. 1286/2012 concerning the approval of the accounting
regulations in accordance with the International Financial Reporting Standards, applicable to the
companies listed on a regular stock exchange market and the Order of the Public Finance Ministry no.
123/04.02.2016, on the main aspects related to the preparation and filing of the annual financial statements
and annual accounting reports of the economic agents at the territorial units of the Public Finance Ministry.
This responsibility includes: the design, implementation and maintaining of an internal control
relevant for the adequate preparation and presentation of the annual financial statements free of significant
misrepresentations due to fraud or error, the selection and application of adequate accounting policies, the
preparation of reasonable accounting estimates, in the given circumstances.
3.
Auditor’s responsibility
Our responsibility is, based on the audit conducted, to express an opinion on these annual financial
statements based on the statutory audit conducted. We conducted the audit in accordance with the Auditing
Standards issued by the Romanian Chamber of Auditors and the International Auditing Standards. These
standards require that we comply with the ethical requirements, and that we plan and conduct the audit
with a view to obtaining a reasonable assurance that the annual financial statements are free of significant
misrepresentations.
A statutory audit consists in carrying out procedures in order to obtain the auditing evidence with
reference to the amounts and information presented in the annual financial statements examined. The
selected procedures are subject to the auditor’s professional judgement, including the assessment of the
risks either of significant misrepresentation of the annual financial statements or due to fraud or error.
In the assessment of these risks, the auditor takes into consideration the internal control relevant for the
correct preparation and presentation of the annual financial statements, with a view to establishing auditing
procedures adequate to the circumstances, but not intended to express an opinion on the efficiency of the
company’s internal control.
A financial audit also includes the evaluation of the adequacy of the accounting policies that were
used and the reasonable character of the accounting estimates elaborated by the management, as well as
the conformance of the information in the audited annual financial statements with the IFRS requirements.
We consider that the auditing evidence we obtained is sufficient and adequate to constitute a basis for our
audit opinion.
ANNUAL REPORT 2015
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4.
Opinion
The auditing of the annual financial statements as on 31.12.2015 was conducted with a view to
expressing a pertinent opinion on the compliance of both the annual accounts with the accounting
references in force, and of the latter with the International Financial Reporting Standards.
No significant deviations from the general accounting principles were found, while the data and
information registered in the annual accounts provide a fair image and meet the requirements of all
categories of financial-accounting information users, and the rules established by the institutions or bodies
in Romania, as well as the provisions of the International Financial Reporting Standards are complied
with.
Subject to the above, the auditor’s opinion is without reserve, that the individual financial
statements of S.C. AEROSTAR S.A. Bacau for the financial year 2015 provide a fair image of the assets,
liabilities, company capitals, revenues and expenses and information data of this entity. In other words,
the individual financial statements for 31 December 2015, in accordance with IFRS, present accurately,
in all significant aspects, the financial position, the global result and the other information related to the
activity performed by S.C. AEROSTAR S.A. Bacau, in accordance with the Accounting Law No. 82/1991,
as republished, the Regulations no. 1/2006 issued by the National Securities Exchange Commission,
currently named the Financial Supervisory Authority (”ASF”), and, mainly, with the International
Financial Reporting Standards.
5.
Other considerations
This report is addressed exclusively to the shareholders of the company as a whole. Our audit was
conducted with a view to being able to report to the shareholders of the company those aspects which we
must report in a financial auditing report, and not in other purposes. To the extent permitted by law, we
do not accept or assume any responsibility for our auditing, our report or the opinion expressed herein,
other than towards the company and its shareholders, as a whole.
The annual individual financial statements attached hereto are not intended to present the financial
position, the result of operations and a complete set of annual explanatory notes to the annual financial
statements in accordance with the accounting regulations and accepted in countries and jurisdictions other
than Romania. Therefore, the annual individual financial statements attached hereto are not prepared for
the use of persons unaware of the accounting and legal regulations in Romania, namely the Accounting
Law No. 82/1991 (republished), the Order of PFM no. 1286/2012 for the approval of the Accounting
Regulations compliant with the International Financial Reporting Standards, applicable to the companies
listed on a regular stock exchange market and the Order No. 65/2015 of the Public Finance Ministry
regarding the main aspects related to the preparation and filing of the annual financial results and annual
accounting reports of the economic agents at the territorial offices of the Public Finance Ministry.
6.
Report on the conformity of the Report of the Board of Directors with the individual financial
statements concluded on 31.12.2015
In accordance with the requirements of the Financial Supervisory Authority (FSA), we have read the
report of the board of directors. This report is attached to the annual individual financial statements. Our
opinion on the individual financial statements does not cover the directors’ report.
In relation to our audit on the individual financial accounts, we have read the board of directors’
report attached hereto, and found out as follows:
a) in the report of the board of directors we did not identify any information inconsistent in all
significant aspects with the information presented in the attached individual financial statements;
b) the report of the board of directors identified above includes, in all significant aspects the
information requested by the accounting regulations regarding the annual individual financial
statements;
c) based on our knowledge and undertsandings obtained during auditing the individual financial
statements for the financial year ended on 31.12.2015, regarding S.C. AEROSTAR S.A., and the
environment thereof, we did not identify misleading information included in the report of the
board of directors.
Bacau, 16.03.2016
HUSANU MONICA
FINANCIAL AUDITOR, registered with the Financial Auditors’ Chamber under no. 2401/2008
On behalf of
S.C. H. M. AUDIT CONTAB S.R.L. Bacau
Registered with the Financial Auditors’ Chamber under no. 1019/2010
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AEROSTAR S.A.
INDIVIDUAL STATEMENT OF THE FINANCIAL POSITION
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
(unless specified otherwise, all amounts are stated in thousand lei)
Note
ASSETS
Immobilized Assets
Tangible immobilizations
Intangible immobilizations
Real estate immobilizations
Financial immobilizations
Total immobilized assets
Circulating assets
Inventories
Commercial receivables and other receivables
Cash and cash equivalents
Total circulating assets
Receivables related to tax on deferred profit
Expenses in advance
December 31,
2015
December 31,
2014
4, 3
5, 3
4, 3
6, 3
142,278
2,006
6,248
212
150,744
119,987
1,561
7,642
477
129,667
8, 3
9, 10
12, 3
43,562
57,194
101,299
202,055
6,546
434
37,380
40,643
92,426
170,449
4,588
408
359,779
305,112
48,729
52,268
57,382
34,773
48,729
19,744
57,295
13,829
7
9,884
(21,517)
181,519
6,524
(3,322)
142,799
20, 3
11
16,875
0
16,875
70,086
9,902
1,012
10,914
67,044
34,497
1,970
14,222
50,689
40,610
110,696
67,564
39,727
4,231
12,983
56,941
27,414
94,458
67,855
359,779
305,112
7, 3
Total Assets
COMPANY CAPITALS AND DEBTS
Capital and reserves
Share capital
Current Result
Result carried forward
Other reserves
Debts regarding the tax on deferred profit
recognized on account of company capitals
Distribution of profit for legal reserve
Total company capitals
Long-term debts
Subsidies for investments
Revenues registered in advance
Total long-term debts
Long-term provisions
Current debts
Commercial debts
Debt with tax on current profit
Other current debts
Total current debts
Short-term provisions
Total provisions
Total debts
Total company capitals, debts and provisions
13
13
13, 3
17, 3
11
11
11
17, 3
ANNUAL REPORT 2015
37
INDIVIDUAL STATEMENT OF THE PROFIT OR LOSS
Note
Revenues from sales
Other revenues
Revenues related to inventories
of products and production in progress
Revenues from production of immobilizations
Total Revenues from Operations
Expenses
Expenses with materials
Expenses with employee benefits
Expenses with amortization of immobilizations
Influence of adjustments ref. current assets
Influence of adjustments ref. provisions
Expenses related to thid party services
Other expenses
Total Expenses for Operations
Profit from Operations
Financial Revenues
Financial Expenses
Financial Profit
Profit before tax
Tax on current profit and deferred
Net Profit of the financial year
December 31, 2015
December 31, 2014
14
14
14
329,764
1,697
7,710
261,051
1,263
5,758
14
854
340,025
848
268,920
15
15
15
(120,553)
(89,049)
(12,477)
(7,428)
(16,238)
(32,672)
(3,042)
(281,459)
58,566
11,817
(10,829)
988
59,554
(7,286)
52,268
(95,399)
(82,422)
(11,009)
(1,521)
(27,329)
(22,578)
(4,615)
(244,873)
24,047
7,414
(6,460)
954
25,001
(5,257)
19,744
15
15
15
16
16
7
OTHER ELEMENTS OF THE GLOBAL RESULT
December 31, 2015
Net Profit of financial year
December 31, 2014
52,268
19,744
Increase of share capital by incorporation of
statutory reserves
-
11,245
Statutory reserves used to increase the share capital
-
(11,245)
Result carried forward, from transition to IFRS
-
1,100
Other earnings
4
-
Other elements of global result
4
1,100
52,272
20,844
Total Global Result of financial year
38
AEROSTAR S.A.
INDIVIDUAL STATEMENT OF THE COMPANY CAPITAL MODIFICATIONS
Other
Result
elements of
carried
Reserves
company
forward
capital
Share
Capital
Total
Company
Capitals
Result of
year
Global Result
A. Balance on January 1, 2015
48,729
13,829
6,524
57,295
Profit of the year
16,422
142,799
52,268
52,268
Other elements of global result
Tax on deferred profit recognized on
account of company capitals
-
-
3,360
84
-
3,444
Distribution of profit for year 2014 to
allocations decided by shareholders in GMS
in April 2015 (NOTE 24)
-
-
-
16,422
(16,422)
-
Net legal reserve
-
18,073
-
-
(21,517)
(3,444)
Other earnings
-
-
-
4
-
4
Total global result of the year
-
18,073
3,360
16,510
14,329
52,272
2,869
(2,869)
-
-
(13,552)
(13,552)
48,729
34,771
9,884
57,384
30,751
181,519
0
20,942
3,360
89
14,329
38,720
Statutory reserves
Dividends to pay for year 2014
B. Balance on December 31, 2015
C. Modifications of company capital
ANNUAL REPORT 2015
39
INDIVIDUAL STATEMENT OF THE TREASURY CASH FLOWS (direct method)
Note
31.12.2015
31.12.2014
9
322,843
291,433
7,998
7,056
(227,976)
(182,092)
payment of taxes, contributions and dues to State Budget
(42,643)
(37,975)
payment of profit tax
(11,505)
(5,073)
48,717
73,349
5,090
2,278
interest collected from loans granted
13
57
interest collected from bank deposits
1,216
1,097
154
86
-
63
303
528
TREASURY CASH FLOWS FROM OPERATIONS
received from customers
taxes and excises recovered from State Budget
payments to suppliers and employees
NET CASH FROM OPERATIONS
TREASURY CASH FLOWS FROM INVESTMENT ACTIVITIES
collected from non-reimbursable funds
collected dividends
collected from sales of tangible immobilizations
instalments collected from loans granted
20
payments for purchase of tangible and intangible immobilizations
(34,151)
NET CASH USED IN INVESTMENT ACTIVITIES
(27,375)
(7,193)
payment of dividends
(12,897)
(10,336)
NET CASH USED IN FINANCING ACTIVITIES
(12,897)
(10,336)
8,445
55,820
92,426
36,727
428
(121)
101,299
92,426
(11,302)
TREASURY CASH FLOWS FROM FINANCING ACTIVITIES
Net increase of cash and cash equivalents
Cash and cash equivalents at beginning of period
Effect of foreign currency variation on cash and cash equivalents
Cash and cash equivalents at end of period
40
AEROSTAR S.A.
NOTES TO THE INDIVIDUAL FINANCIAL STATEMENTS
1. GENERAL INFORMATION
AEROSTAR was established in 1953 and operates in
accordance with the Romanian laws.
S.C. AEROSTAR S.A. operations take place at
its registered headquarters located in Bacau, 9,
Condorilor Street, Code 600302.
The main field of activity of AEROSTAR is
production.
The main object of activity of the company is
“Manufacture of aircraft and spaceships” - code 3030.
The company was registered as a shareholding
company at the Trade Register of Bacau (under
number J04/1137/1991), with the current name S.C.
”AEROSTAR S.A.” and the individual identification
code 950531.
The record of its shares and shareholders is kept,
as provided by law, by S.C. Depozitarul Central S.A.
Bucharest.
2. FINANCIAL REPORTING BASIS –
APPLICATION OF THE
INTERNATIONAL FINANCIAL
REPORTING STANDARDS
The individual financial statements were prepared by
the company in accordance with the International
Financial Reporting Standards adopted by the
European Union.
These financial statements were authorized for release
by the Board of Directors on the date of 17.03.2016.
2.1 Evaluation basis used
The financial statements were prepared based on the
historic cost.
2.2 Currency for operations and presentation
The company’s accounting records are kept in lei. The
company considers the Romanian currency (Leu) as
the currency for operations in accordance with the
definition in IAS 21 “The Effects of Changes in
Foreign Exchange Rates”. The financial statements
are presented in thousands lei, rounded to the closest
thousand lei.
2.3 Use of estimates and professional judgement
The preparation and presentation of the individual
financial statements in accordance with IFRS requires
the use of estimates, judgement and assumptions
affecting the implementation of the accounting
policies as well as the reported value of the assets,
liabilities, revenues and expenditures. The actual
results may differ from the estimates. Such estimates
and reasoning are made based on the historic
experience as well as on a series of factors considered
adequate and reasonable.
The reported accounting values of the assets, the
debts that cannot be determined or obtained from
other sources are based on these estimates considered
adequate by the company management.
Such estimates, as well as the reasoning and
assumptions behind them are reviewed on a regular
basis and the result thereof is recognized in the
timeperiod when the estimate was reviewed.
2.4 Sources of uncertainty in estimations and the
management of significant risks
In the risk management processes the company
pursues to secure its mid and long-term sustainability
and reduce the uncertainties associated to its strategic
objectives, under strict compliance with the law.
The risk management processes taking place at
various company levels ensure the identification,
analysis, evaluation and management of all risks with
a view to mitigate their effects down to an agreed
level.
The company has implemented proactive
countermeasures meant to reduce the probability of
a risk occurrence, as well as reactive countermeasures
meant to mitigate the impact of the risks.
2.4.1 Risks currently managed by the company:
▪ Operational risk
The operational risk is the risk to incur losses or the
failure to obtain the profits at the budgeted level, a
risk that is determined by internal factors (inadequate
performance of certain activities, manpower related
factors or the existence of inadequate technological
processes), or by external factors (economic
conditions, changes in the business environment, law
modifications etc.).
The main responsibility to develop and implement
the controls applicable to the operational risk pertains
to the executive management of each division; the
support for such responsibility is the development
of general standards at company level for the
management of the operational risk.
▪ Market risk
The market risk is the risk that the fair value or the
future cash flows of a financial instrument fluctuate
due to the modifications of the market prices.
The market risk comprises the price risk, the currency
risk and the interest rate risk.
The price risk is determined by the possibility to incur
a loss or the failure to obtain the expected profits as a
result of the variations in the market prices, especially
in the case of commercial agreements over longer
timeperiods (over 1 year);
To avoid or mitigate the price risk is made by including
in the commercial agreements of certain clauses on
the yearly price update or by including in the contract
price a safety margin against the price changes of the
raw material.
AEROSTAR S.A. is exposed to the currency
exchange risk as 77% of the company turnover is
reported to USD and EUR while a significant portion
of the operating expenses relates to the currency for
operations (LEI).
Thus the company is exposed to the risk that the
currency variations could affect both its net revenues
and its financial position, as they are expressed in LEI.
ANNUAL REPORT 2015
41
An analysis of AEROSTAR S.A. sensitivity to the
currency exchange variations is detailed in Note 9
(Financial Instruments) to the Financial Statements.
During the reported period AEROSTAR S.A. did not
record financial losses.
As for the interest rate risk, due to the fact that
AEROSTAR S.A. did not use the contracted Credit
Line during the reported timeperiod, the revenues
and cash flow are independent of the variation of the
interest rate risk on the banking market.
▪ Credit risk
The credit risk is the risk that AEROSTAR incurs
a financial loss as a result of a customer’s failure to
comply with the commercial contract obligations.
The credit risk is evaluated and managed for each
business partner based on the ratings reviews
including the country risk for the country where the
customer operates.
Based on the rating review, a maximum commercial
credit level is allocated to each customer (value and
duration), and the rating and the credit limits granted
are monitored and reviewed on a regular basis.
In certain cases, specific instruments for risk
mitigation are requested (downpayments, letters of
credit, confirmed export letters of credit).
AEROSTAR holds no significant exposure toward a
single partner and no significant concentration of the
turnover on a single geographical area.
A presentation of the quantitative information
regarding AEROSTAR exposure to the credit risk is
presented in Note 9 (Financial Instruments) to the
Financial Statements.
▪ Liquidity risk
The liquidity risk is the risk AEROSTAR may
encounter difficulties to fulfill the related obligations
as they become due.
To evaluate the liquidity risk, the treasury flows from
operations, investments and financing are monitored
and reviewed weekly, monthly, quarterly and annually
in order to establish the expected level of net changes
to liquidities. These reviews provide a base for the
financing decisions and capital liabilities.
In order to mitigate the liquidity risk, AEROSTAR
maintains annually a cash flow reserve as a Credit
Line (usable as an account overdraft) granted by the
banks.
In the reported period AEROSTAR did not use
the contracted Credit Line of 2,500,000 USD, all
Company activities being funded from company
generated sources.
2.5 Adequacy of capitals
The company’s policy is focused on maintaining a
solid capital basis in order to support the continuous
development of the company and accomplish its
strategic objectives.
The company will continue to act firmly so as to
ensure the sustainability of its investments and
business growth.
42
AEROSTAR S.A.
The strategy adopted develops the main object of
activity of AEROSTAR, so that the aeronautical field
represents 93% of the turnover. The general objective
is the annual growth of the company turnover. The
specific objectives which sustain the general objective
comprise the continued organic development of the
company: the development of the centers of excellence
by continuing the modernizations, investments and
continuous improvement programmes.
2.6 Presentation of information in the financial
statements
The financial statements are presented in accordance
with the requirements of IAS 1 “Presentation of
Financial Statements”. The company has opted for a
presentation by nature and liquidity in the statement
of the financial position and a presentation of the
revenues and expenditures by their nature in the
profit or loss statement, considering that these
presentation methods provide relevant information
for the position of the company.
In terms of accounting regulations, AEROSTAR
S.A. is the subsidiary of the company IAROM S.A.
and, therefore, the parent company that consolidates
the financial statements of the group is S.C. IAROM
S.A., with the individual identification code 1555301,
having its registered headquarters in Bucharest, 39
Aerogarii Boulevard.
The consolidated financial statements for the financial
year 2014 were submitted to ANAF under registration
number 77590709/28.08.2015. The parent company
will prepare and publish a set of consolidated
financial statements in accordance with the applicable
accounting regulations, for the financial year ended
31.12.2015.
The amount of dividends proposed before the
approval for release of the financial statements (not
recognized as distribution to the owners during the
timeperiod) is 12,791,305.8 lei, corresponding to a
gross dividend per share of 0.084 lei.
2.7 Reporting on segments
The company has a sole segment of operations in
accordance with IFRS 8 and no distinct financial
information is available for various components of
the entity. The information regarding the sales by
categories of products and markets are presented in
detail in the Report of the Board of Directors.
2.8 Standards and interpretations in force
2.8.1 Standards and interpretations in force in the
current timeperiod
The following standards issued by the Committee
for International Accounting Standards and adopted
by the European Union are in force in the current
timeperiod:
• IFRS 2 “Share-based Payment” - modifications in
force for periods as of or after 01 February, 2015.
• IFRS 3 “Business Combinations” – modifications
in force for periods as of or after 01 February,
2015.
•
IFRS 8 “Operating Segments” – modifications in
force for periods as of or after 01 February. 2015.
• IAS 16 ”Property, Plant and Equipment” –
modifications in force for periods as of or after 01
February, 2015. Since the modifications refer to
the re-evaluation model, the Financial Statements
of the company are not affected.
• IAS 24 ”Related Party Disclosures” –
modifications in force for periods as of or after
01 February, 2015.
• Amendments to IAS 38 “Intangible Assets”
(applicable for yearly periods as of or after 01
February, 2015). Since the modifications refer to
the re-evaluation model, the Financial Statements
of the company are not affected.
• Amendments to IFRS 9 “Financial Instruments”
– applicable to the yearly periods as of 01 January,
2015.
• Supplements to IFRS 9 “Financial Instruments”
(applicable to the yearly periods as of or after 01
January 2015).
• IAS 37 “Provisions, Contingent Liabilities and
Contingent Assets” and IAS 39 “Financial
Instruments: Recognition and Measurement” –
modifications in accordance with IFRS 3, in force
as of or after 01 February, 2015.
• Amendments to IAS 19 “Employee Benefits” –
(in force as of or after 01 February, 2015).
• Modifications to IFRS 13 “Fair Value
Measurement”, IFRS 3 “Business Combinations”
and IAS 40 “Investment Property” (in force for
periods as of or after 01 February, 2015).
The company considers that these modifications
are irrelevant for its financial statements and their
adoption has not lead to any change of the company’s
accounting policies.
2.8.2 New standards and interpretations
Standards (Modifications to Standards) and
interpretations adopted by the Committee for
International Accounting Standards and the European
Union, but not entered in force.
• Amendments to the International Accounting
Standard IAS 1 Presentation of Financial Statements,
applied as of January 01, 2016;
• Modification of IAS 34 Interim Financial Reporting
and of IFRS 7 Financial Instruments: Disclosures,
modified in accordance with the amendments to
IAS in force as of 01 January, 2016;
• IAS 16 Property, Plant and Equipment – modifications
in force for periods as of or after 01 January, 2016;
• Amendments to IAS 38 Intangible Assets (applicable
to annual periods as of or after 01 January, 2016);
• Amendments to IAS 41, Agriculture; IAS 17 Leases,
IAS 23 Borrowing Costs, IAS 40 Investment Property,
in force for periods as of 01 January, 2016;
• Modifications to IFRS 11 Joint Arrangements and
IFRS 9 Financial Instruments in force for periods as
of or after 01 January, 2016;
• Additionally, as part of the Annual Improvement
Cycle 2012-2014, modifications of the following
standards:
– IFRS 5 Non-current Assets Held for Sale and
Discontinued Activities, IFRS 7 Financial
Instruments: Disclosures, IAS 19 Employee Benefits,
IFRS 1 First-time Adoption of International
Financial Reporting Standards.
The company evaluates the potential effects of the
amendments to the International Financial Reporting
Standards and, in accordance with the intitial
estimates, their adoption will have no significant
impact on the financial statements of the company.
3. ACCOUNTING POLICIES
The accounting policies represent the specific
principles, bases, conventions, rules and practices
applied in the preparation and presentation of the
financial statements.
The company management has established the
accounting policies for the operations performed, as
described in the accounting policy manual.
These policies were prepared taking into consideration
the specific features of the company activity and were
approved by the Board of Directors of the company.
The accounting policies were prepared in compliance
with the requirements of the International Financial
Reporting Standards as approved by the European
Union.
Modifications in the accounting policies
The modification of the accounting policies is only
permitted if requested by IFRS or if it results in more
relevant or more reliable information with reference
to the company operations.
The company modifies an accounting policy only if
such modification:
Is required by an IFRS or
Results in financial statements that provide reliable
and more relevant information with reference to
the effects of the transactions, of other events or
conditions over the financial performance or cash
flows of the entity.
How the modifications are applied in the accounting
policies:
The entity takes into account a modification in
the accounting policy that results from the initial
implementation of an IFRS in conformance with the
specific transitory provisions, if any, and when the
entity modifies an accounting policy at the first time
application of an IFRS that does not include specific
transitory provisions.
General accounting policies
The general accounting policies which are the basis
of the record into accounts of the operations,
transactions, the evaluation of the elements presented
in the annual financial statements as well as in the
preparation of the financial statements are:
The principle of continuity. The company
continues its operations normally, without entering
into liquidation or without reducing significantly its
activity.
ANNUAL REPORT 2015
43
The principle of consistency of methods. The
evaluation methods and the accounting policies
are applied consistently from one financial year to
another.
The principle of prudence, according to which the
assets and revenues must not be overrated, while the
liabilities and expenses must not be underrated.
The individual statement of the global result can only
consider the profit obtained as on the date of the
The financial statements reveal all the debts arising
during the current financial year or of a previous
financial year, even if they become apparent only
between the date of the balance sheet and the date
when the statement was prepared.
The financial statements state all predictable debts
and potential losses arising during the current
financial year or of a previous financial year, even if
they become aparent only between the date of the
balance sheet and the date when the statement was
prepared.
To this end, the possible provisions shall also be
accounted, as well as the debts resulted from the
contractual provisions. This is accounted in the
balance sheet or in the explanatory notes according
with the nature of such debt.
All the depreciations are accounted, no matter if the
result of the period is profit or loss. The registration
of the adjustments for depreciation or loss of value
is made on the expenses account, regardless of their
impact on the statement of the global result.
The principle of independence
The revenues and expenses of the financial year are
registered irrespective of the date when the revenues
are earned or when the expenses are paid.
The principle of accrual accounting
The company prepares the financial statements based
on accrual accounting, except for the information on
cash flows.
The principle of separate evaluation of assets
and liabilities elements, according to which the
components of the assets and liabilities must be
evaluated separately.
The principle of non-compensation – The assets
and liabilities, the revenues and expenses, respectively,
are not compensated, except for the cases when the
compensation is requested or allowed by a standard
or by an interpretation thereof.
The principle of prevalence of economic aspects
over legal aspects, according to which when
presenting the values in the balance sheet and in the
profit and loss account, the economic basis of the
reported transaction or operation is considered, not
only the legal form thereof.
The principle of significance and aggregation
threshold
Each significant class of similar elements is presented
separately in the financial statements.
44
AEROSTAR S.A.
Accounting policies on estimates and errors
Estimates
The preparation and presentation of the yearly and
interim individual financial statements, in accordance
with the IFRS suppose the use of estimates,
judgements and assumptions affecting the application
of the accounting policies as well as the reported
value of assets, debts, revenues and expenses. Such
estimates and judgments are made based on the
historic experience, as well as on a series of factors
considered adequate and reasonable. The reported
accounting values of the assets and liabilities which
cannot be determined or obtained from other sources
are based on such estimates considered adequate by
the company management.
The estimates, judgements and hypothesis are
reviewed on a regular basis and the result of such
reviews is recognized in the timeperiod when the
estimate was reviewed.
Any modification of the accounting estimates will be
recognized prospectively by including it in the result:
▪ Of the timeperiod when the modification occurs,
if it affects only the respective time period; or
▪ Of the period when the modification occurs and
of the subsequent periods, if the modification
also affects such periods.
The company uses estimates in order to determine:
▪ Uncertain customers and adjustments for the
depreciation of the related receivables;
▪ The value of the provisions for risks and expenses
to set up at the end of a time period (month,
quarter, year) for litigations, for the dismantling
of tangible immobilizations, for restructuring, for
warranties granted to customers, for obligations
towards manpower and other obligations;
▪ The adjustments for the depreciation of tangible
and intangible immobilizations;
At the end of each reporting period, the company
must estimate whether there are any signs of
depreciation. If any such signs are identified, the
recoverable value of the asset is estimated in order
to determine the extent of depreciation (if any). The
recoverable value is the maximum between the fair
value minus the sale expenses and the value during
operation. When establishing the value in operation,
the management estimates a future cash flow reduced
to the current value, using a discount rate which
reflects the current market value of the money value
in time and the specific risks of the assets for which
the cash flow estimates have not been adjusted.
▪ The lifetimes of the tangible and intangible
immobilized assets;
The company reviews the estimated lifetime of the
immobilized tangible and intangible assets at least at
the end of each financial year, in order to establish the
degree of adequacy.
▪ The stocks of raw materials and materials requiring
the creation of adjustments for depreciation.
▪ Deferred taxes.
Presentation of information
Insofar as possible, the company will present the
nature and value of a modification to an accounting
estimate which has an effect in the current/
subsequent period(s).
Errors
Errors can arise regarding the recognition, evaluation,
presentation or description of the items in the
The financial statements are not compliant with the
IFRS standards if they contain either significant or
insignificant errors made intentionally in order to
obtain a certain presentation of the financial position
of the financial performance or of the treasury cash
flows of an entity.
Accounting policies on immobilizations
TANGIBLE IMMOBILIZATIONS
Recognition
The company recognizes the tangible immobilizations
when:
▪ They are likely to generate future economic
benefits for the company corresponding to the
respective asset.
▪ The cost of the asset can be assessed in a reliable
manner.
The tangible immobilizations are tangible assets
which:
▪ are held to be used to produce or supply goods
and services to be rented to third parties or to be
used for administrative purposes;
▪ are expected to be used over several periods of
time.
The following are not capitalized:
Repairs and maintenance
General administration expenses
Initial operation losses
Costs related to relocation or reorganization of
the activity.
The company management has set an asset
capitalization threshold of 2,500 lei. All purchases
below this amount shall be considered expenses of
the time period.
Exceptions: The computers are considered tangible
immobilizations amortizable regardless of their entry
value, and they shall be amortized throughout the
useful lifetime established by the reception board.
Also, the tooling and jigs are accounted as stocks and
recognized as expenses of the period when they are
consumed, regardless of their entry value, taking into
account that they usually have a useful lifetime of less
than a year, as well as their degree of specialization
(they are intended to be used for a particular type of
product/service).
De-recognition
The accounting value of a tangible immobilization
element is derecognized:
▪ upon assignment
▪
when no more future economic benefits are
expected from its use or disposal.
The revenue or loss resulted from the de-recognition
of a tangible immobilization is included in the profit
or loss when the immobilization is derecognized.
Evaluation at recognition
The costs at which a tangible immobilization is
accounted comprise:
▪ the purchasing price, including customs taxes
and non-reimbursable purchasing fees net of any
discount and commercial deductions;
▪ costs which can be attributed directly to bringing
the assets to the location and condition needed to
operate as desired by the company management;
The initial estimate of the costs to dismantle and
restore the site where it is located. For such costs
to be accounted, the provisions set forth in IAS 37
“Provisions, contingent liabilities and contingent
assets” apply.
IAS 2 “Inventories” is applicable to determine the
costs to produce the tangible immobilizations under
company’s own administration.
The cost of a tangible immobilization held by the
company based on a leasing agreement is determined
in accordance with IAS 17 “Leases’.
Assessment after recognition
The company has adopted the cost-based model as
accounting policy. After the recognition as an asset,
the tangible immobilizations are accounted for at
its cost minus the aggregate amortization and any
aggregate loss from depreciation.
Any surplus from reevaluation corresponding to
the tangible immobilizations, earning obtained as
this category of immobilizations is amortized, is
capitalized through direct transfer in the result carried
forward representing the surplus obtained from
reevaluation reserves.
Reclassification in investment property and
immobilized assets held for sale
When the use of a tangible immobilization is modified
from a tangible asset used in the production of goods
or in the supply of services, or used in administrative
purposes, into a tangible immobilization used to be
rented, this is reclassified into an investment property,
as per IAS 40. When the conditions are met for the
classification of an asset as held for sale, such asset is
reclassified in accordance with IFRS 5.
Amortization of tangible immobilizations
The amortization is recognized in the profit and
loss account using the linear method for the useful
lifetime estimated for each tangible immobilization or
component thereof, if applicable.
The amortizable value is allocated in a systematic
manner throughout the useful lifetime of the asset.
The amortization methods, the useful lifetimes and
the residual values are reviewed at least at the end
of each financial year and adjusted accordingly.
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45
The adjustment of the accounting estimates is made
in accordance with IAS 8 “Accounting policies,
changes in accounting estimates and errors”.
The amortization of an asset begins when the asset is
available for use (i.e. when it is in the suitable location
and condition to be functional as desired by the
management) and ends when the asset is reclassified
into another category, or on the date when the asset
is de-recognized.
The amortization does not cease when the asset is
not in use.
The land and buildings are separable assets and their
accounts are kept separately, even when they are
acquired jointly.
Usually the land has unlimited lifetime and therefore
it is not amortized.
For each reporting period, the company presents, in
the explanatory notes the gross accounting value of
the fully amortized tangible assets which are still in
operation.
Depreciation
To determine whether a tangible immobilization
element is depreciated, the company applies IAS 36
“Impairment of assets”.
At the end of each reporting period the company
estimates whether there are any indications of assets
depreciation.
If such indications are identified, the company
estimates the recoverable value of the asset.
INTANGIBLE IMMOBILIZATIONS
Recognition
The company makes use of professional judgement
in the recognition of an intangible immobilization in
order to decide if the most important component is
the tangible or the intangible one.
Criteria for recognition of intangible immobilizations:
▪ the asset can be identifiable
▪ the company has control over the asset
▪ future economic benefits are associated to the
asset
▪ the cost (value) of the asset is measurable in a
reliable and trustworthy manner.
De-recognition
An intangible immobilization is de-recognized upon
disposal or when no future economic benefits are
estimated to occur from its use or disposal.
Evaluation at recognition
All intangible immobilizations which comply with
the definition and recognition criteria are evaluated at
their initial cost.
The cost is determined differently, depending on how
the asset was obtained.
In case of purchase, the cost comprises:
▪ its purchasing price, including import customs
taxes and non-reimbursable purchase taxes, after
deducting discounts and commercial deductions.
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AEROSTAR S.A.
▪
any other costs directly attributable to the
preparation of that asset for use.
In case of intangible immobilizations internally
generated such execution steps are clearly separated
into:
▪ research phase. The research costs are treated as
expenses of the time period
▪ development phase. The development costs
are recognized as intangible asset, provided the
following conditions are demonstrated:
– technical feasibility to complete the asset, so
that it is available for use or sale;
– availability of adequate resources – technical,
financial, human to complete the development;
– intention to complete and use or sell the
intangible asset;
– capacity to use or sell the asset;
– the manner in which the asset will generate
future economic benefits;
– capacity to assess the related costs.
If the company cannot distinguish between the
research and development phase of an internal
project to set up an intangible immobilization, the
company treats the project-related costs as if incurred
exclusively in the research phase.
Items not capitalized by the company:
▪ internally generated trademarks
▪ publication titles
▪ lists of licenses (except as provided in IFRS 3)
▪ other similar elements.
Evaluation after recognition
The company has adopted as accounting policy
the cost-based model, which means that the
intangible immobilizations are evaluated at their
net accounting value equal with their cost less the
aggregate amortization and any loss registered from
depreciation, corresponding to those assets.
The subsequent expenses are capitalized only when
they increase the value of the future economic
benefits incorporated in the asset they are intended
for. All the other expenses, including the expenses
for the commercial fund and internally generated
trademarks are recognized in the profit and loss
account when they are incurred.
Any surplus from reevaluation corresponding to the
intangible immobilizations, earning obtained along
the amortization of this category of immobilizations,
is capitalized through direct transfer in the result
carried forward representing the surplus obtained
from reevaluation reserves.
Amortization of intangible immobilizations
The company evaluates if the useful lifetime of an
intangible immobilization is definite or indefinite.
An intangible immobilization is deemed by the
company to have an indefinite useful lifetime when,
based on the review of all relevant factors, there is no
predictable limit of the period for which the asset is
expected to generate net cash inputs.
The amortization of an intangible immobilization
starts when such asset is available for use and ends
when the asset is reclassified into another category
or on the date when the asset is de-recognized. The
factors relevant for determining the useful lifetime are
provided in IAS 38 “Intangible assets”.
The intangible immobilizations with a limited useful
lifetime are amortized by the company using the linear
method, while the expense with the amortization
is recognized in the profit or loss, except when it is
included in the accounting value of another asset.
The intangible immobilizations with an indefinite
lifetime are not submitted to amortization.
The useful lifetime of an intangible immobilization
arising from contractual rights or from other legal
rights must not exceed the validity period of the
contractual rights or the other legal rights. The
amortization methods, the useful lifetimes and the
residual values are revised at the end of each financial
year and adjusted accordingly.
The residual value of an intangible immobilization
with a limited useful lifetime is evaluated as zero,
except when:
▪ there is a commitment from a third party to
purchase the immobilization at the end of its
useful lifetime;
▪ there is an active lifetime for the immobilization
and the residual value can be determined depending
on the market likely to be available at the end of
the useful lifetime of the immobilization.
Depreciation
In accordance with IAS 36, the intangible
immobilizations with an indefinite lifetime must be
tested yearly as to their depreciation, by comparing
their recoverable value with their accounting value.
The testing shall be executed whenever there are
indications that an intangible immobilization with an
indefinite lifetime might be depreciated.
INVESTMENT PROPERTY
Recognition
An investment property is that property (land or
a building – or a part thereof, or both) held (by
the owner or lodger based on a financial leasing
agreement) for renting purposes or for increasing the
capital value or both, rather than for:
▪ use in production or for the supply of goods and
services or in administrative purposes;
▪ sale in the normal course of activity.
An investment property must be recognized as an
asset only and only when:
▪ it is possible that the future economic benefits
related to the investment property are generated
towards the company;
▪ the cost of the investment property can be
assessed in a reliable manner.
De-recognition
The investment property must be de-recognized
upon assignment or when finally withdrawn from use
and no more future economic benefits are likely to
arise from such disposal.
The disposal of an investment property can be
made by sale or by contracting a financial lease. To
determine the date when the investment property was
disposed of, the criteria of IAS 18 “Revenues” or IAS
17 “Leases” are applied.
Any earnings or losses generated by the write-off
or assignment of an investment property must
be recognized in the profit or loss at the time of
withdrawal from use or assignment.
Classification
The category of investment property comprises:
▪ land held with a view to increase the capital value
on long term;
▪ land held for an indefinite future use;
▪ a building owned by the company and rented
based on an operational lease;
▪ property to be set up or refurbished for future use
as an investment property.
Certain properties may include a part held for renting
or with a view to increasing the capital value, and
another part held for use in the production of goods,
supply of services and for administrative purposes.
If these two parts can be sold separately (or rented
separately), then they must have separate accounts
– one as an investment property and the other as a
tangible immobilization.
If the parts cannot be sold or rented separately, then
the property must be treated only as investment
property if an insignificant part thereof is held for
use in goods production or in the supply of services
or for administrative purposes.
In this case the professional reasoning is used for the
appropriate decision.
When performing auxiliary services for the tenants
of a real estate property, and if such services are an
insignificant part of the entire contract, such property
will be classified as real estate investment.
If such services are a significant component of the
entire contract, the property will not be classified as a
real estate investment.
Evaluation upon recognition
An investment property must be assessed initially
on cost, including any other expenses directly
attributable. If the payment for an investment
property is postponed, then its cost will be its price
equivalent in cash. The difference between this
amount and the total payments is recognized during
the crediting period as expense with an interest.
After the initial recognition, the company has opted
for the cost-based model for all its investment
property in accordance with the dispositions of IAS
16 for this model.
ANNUAL REPORT 2015
47
The transfers into and from the investment property
category are made if and only if there is a change of
their use.
The transfers between categories do not change
the accounting value of the transferred investment
property, nor do they change the cost of that
property in terms of evaluation of presentation of
the information.
Amortization
The investment properties are amortized in
accordance with the provisions set forth in IAS 16
“Property, Plant and Equipment”.
ASSETS PURCHASED BASED ON LEASES
The leasing agreements by which the company
substantially assumes the risks and benefits related to
the ownership title are classified as financial leases.
At the time of the initial recognition, the asset subject
to the lease is evaluated at the lesser of the fair value
and the current value of the minimum lease payments.
Subsequently to the initial recognition, the asset is
accounted for in accordance with the accounting
policy applicable to the asset.
The other leases are classified as operational leases.
FINANCIAL IMMOBILIZATIONS
The financial immobilizations account:
▪ Shares held in the affiliated companies, financial
assets classified as investments retained till due
date.
▪ Other immobilized securities.
▪ Long-term loans granted, as well as their related
interest. This category comprises the amounts
given to third parties based on contracts for
which interest is charged in accordance with the
applicable law.
▪ Other immobilized receivables, as well as their
related interests. This category comprises the
warranties, deposits and bails deposited at third
parties, the receivables related to financial leases.
The financial immobilizations recognized as assets
are evaluated at the purchase cost or at the value
established in their acquisition agreement.
The financial immobilizations are presented in the
statement of financial position at their purchasing
value minus possible loss recognized from
depreciation.
Accounting policies on inventories
The inventories are assets:
▪ held for sale during the course of the regular
activity
▪ in production for future sale
▪ represented by materials and other consumables
to be used in the production processes or for the
supply of services.
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AEROSTAR S.A.
The inventories are evaluated at the lesser of the cost
and the net achievable value.
The net achievable value represents the sale price
estimated for the inventories minus all estimated
costs to complete and the costs necessary for sale.
The cost of the inventories comprises: the
acquisition costs, the conversion costs as well as other
costs incurred in order to bring the inventories in the
condition and at the location where they currently are.
The acquisition costs of the inventories comprise
the purchasing price, the import customs taxes and
other taxes (except the taxes the entity can recover at a
later time from the fiscal authorities), shipment costs,
handling costs and other costs directly attributable
to the acquisition of finished goods, materials and
services.
The conversion costs include the direct labor costs,
other direct production-related expenses, as well
as the systematic allocation of indirect production
expenses, fixed and variable overhead.
The allocation of overhead expenses on each product
is based on the volume of labor used to make that
product. The allocation of the fixed overhead on
the costs is based on a normal production capacity,
expressed in direct labour hours.
The calculation of such inventories which are not
normally fungible and of the resulting goods or
services is determined by the specific identification
of their individual costs.
Upon release from the account of the inventories, and
such fungible assets, they are evaluated and accounted
by applying the Average Weighted Cost method.
Borrowing Cost
The borrowing costs are recognized as financial
expenses according to the contractual provisions
during the period of time when such borrowing costs
are due, or which actually occur and are not directly
attributable to the acquisition.
The borrowing costs which are directly attributable to
the acquisition, construction, or to the production of
an asset with a long manufacturing cycle are included
in the cost of that asset.
The production cost of long-manufacturing cycle
assets includes only those borrowing costs connected
with the production period.
The inventories category comprises:
▪ raw materials participating directly in the
manufacture of products and found on the
completed finished product in total or in part,
either in their original form or transformed;
▪ consumables (auxiliary materials, fuels, packaging
materials, spare parts and other consumables),
participating or contributing to the manufacturing
or in the operational process, typically not
identifiable in the finished product;
▪ materials such as inventory objects;
▪ products, id est:
–
–
–
–
–
blanks;
finished products;
scraps, recoverable materials and waste;
merchandise;
packings, including reusable packaging
material, purchased or manufactured, intended
to be used on the sold products, and which
can be kept temporarily by third parties and
returned as established in the agreements;
– production in progress.
– goods in custody, for further processing or in
consignment at third parties.
Distinct accounts are provided for purchased
inventories, for which the risks and benefits have been
transferred, but are still in the purchasing process.
The accounts of inventories are kept both in terms of
quantity and value, by using the permanent inventory
method.
Under these conditions, the accounts contain a record
of all the entry and exit operations, thus allowing
an accurate real time determination of the existing
inventories, both in terms of quantity and value.
The company management approves the level of
normal technological losses on a regular basis.
The accounts of entries of inventories is based on the
date of the transfer of risks and benefits.
Holding in any way of any material goods or the
execution of any financial operations without
recording them in the accounts is prohibited.
In terms of inventories, all entries of material goods in
the company are submitted to the incoming reception
by the reception board while the registration thereof
is carried out in the stores areas.
The records in the stores are kept by the storekeeper
in charge with the account.
The material goods received for processing, in
custody or in consignment are received and registered
distinctly as entries in the accounts.
In the accounts, the value of such goods is registered
off the balance sheet.
In case of time gaps between the purchase and
the incoming inspection of the goods which are in
the company property, the following procedure is
observed:
– the goods arrived without invoice are recorded as
inflows in the inventory, both at the store and in
the accounts, based on the receiving inspection
and the accompanying documents.
– the goods arrived, and without receiving
inspection are recorded as inventory inflows.
In case of time gaps between the sale and the delivery
of the goods, the goods are recorded as outflows from
the company, being no longer considered company
property, and the following procedure is observed:
– the goods sold and not delivered are distinctly
recorded in the company accounts, while in the
company accounts they are registered as offbalanced sheet, in the account 8039 – Other
values off balance-sheet;
– the goods delivered but not invoiced yet are
recorded as outflows from the company inventory,
both at the store and in the accounts, based on
the documents confirming the outflow from the
inventory.
– the goods purchased or sold with clauses as to the
ownership title are recorded in accordance with
the agreements concluded.
The inventories are evaluated at their purchase cost
or production cost, as applicable. Every quarter, value
adjustments are made for the circulating assets, based
on the findings of the Inventory committees and/or
unit managers, with a view to presenting the assets at
cost value or net achievable value, whichever is less.
In SC AEROSTAR SA, the depreciated goods are
deemed to be the goods older than the storage period
established by internal decision of the Board of
Directors.
Accounting policies on the company liabilities
The company liabilities are recorded in the accounts
as third-party accounts. The bookkeeping of the
suppliers and other liabilities are kept on categories,
as well as on each natural or legal person.
The tax on profit/revenue to pay is recognized as a
debt up to the unpaid amount.
All excises and special funds included in prices
or tariffs are recorded in the corresponding debt
bookkeeping, without transit through the revenue
and expenditure accounts.
The operations that cannot be recorded distinctly
in the related accounts and which require further
clarifications are recorded in a distinct account 473
(Settlements from operations under clarification)
The debts in foreign currency are recorded in the
accounts both in lei, and in foreign currency.
Monthly evaluation
At the end of each month the debts in foreign
currency are evaluated at the exchange rate on the
currency market on the last banking day of that
month, as notified by the National Bank of Romania.
The variations in the exchange rate are recognized
in the accounts as revenues or expenditure from the
exchange rate differences, as applicable.
At the end of each month, the debts expressed in lei
that are settled depending on a currency exchange
rate are evaluated at the exchange rate on the currency
market on the last banking day of that month, as
notified by the National Bank of Romania.
The variations of the exchange rate are recognized
in the accounts as financial revenues or expenses, as
applicable.
The differences in the exchange rate arising at the time
of clearing the debts in foreign currency at exchange
rates differing from the ones used for recording such
debts initially, during that month or from the ones
recorded in the accounts must be recognized in the
same month when they arise, as revenues or expenses
from changes in the exchange rate.
ANNUAL REPORT 2015
49
The differences in value arising at the time of clearing
debts in lei, at an exchange rate differing from the
exchange rate used for recording such debts initially,
or during that month, or from the ones recorded
in the accounts must be recognized in the same
month when they arise, as other financial revenues
or expenses.
Short-term liabilities
A debt must be classified as short-term debt, also
called current debt, when:
▪ it is expected to be cleared during the normal
operating cycle of the company, or
▪ it is exigible within 12 months from date of the
balance sheet.
▪ all other debts must be classified as long-term
debts.
Long-term liabilities
The debts that are exigible within a period exceeding
12 months are long-term debts.
They will also be considered long-term debts bearing
interest even if they are exigible within 12 months
from the date of the financial statements, if:
a) the initial deadline was longer than 12 months;
and
b) there is an agreement for refinancing or
rescheduling the installments, concluded before
the date of the financial statements.
The long-term liabilities comprise:
▪ Long- and mid-term bank loans,
▪ Commercial and similar debts, as well as the
interests related thereto.
Certificates for greenhouse effect gas emissions
The company acknowledges the deficit of certificates
for greenhouse effect gas emissions in the financial
statements based on the net debt method. In
accordance with this method, only the debts expected
to arise from exceeding the assigned quota of
certificates are recognized.
The company estimates its own yearly volumes of
emissions at the end of each reporting period and
recognizes the total additional debts estimated for
the forecasted excess volume of greenhouse effect
gas emissions at the fair value of the additional units
to be purchased or the sanctions to be incurred in
accordance with the national legislation. The net
additional debt is recognized in the profit or loss
based on the production unit method.
If the company estimates to use less than the
assigned quota of certificates for greenhouse effect
gas emissions, any potential revenue from the sale of
unused certificates is recognized only upon the actual
sale thereof.
Accounting policies on Receivables
Such receivables include:
▪ commercial receivables, which are amounts owed
by the customers for goods sold and services
supplied in the normal course of activity;
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AEROSTAR S.A.
▪
commercial effects to receive, as instruments
from third parties;
▪ amounts owed by the employees or affiliated
companies;
▪ advances given to the suppliers of immobilizations,
goods and services;
▪ receivables related to manpower and state budget
▪ the receivables are registered based on accrual
accounting in accordance with law or subject to
the agreements in place.
The receivables account provides the record of
company receivables in relation to customers,
manpower, social security, state budget, shareholders,
various payers.
The customer accounts are kept on categories
(internal customers for services and products, as well
as external customers for services and customers) and
on each natural and legal person.
Any debts resulting from treasury advances not
settled, from distributions of work outfits, as well as
the debts from material damages, fines and penalties
established by Court orders and other receivables
related to personnel are recorded as other receivables
related to manpower.
The operations that cannot be recorded distinctly
in the related accounts and requiring further
clarifications are recorded temporarily in a distinct
account (account 473). The amounts recorded in this
account are clarified within three months from the
date when they are found.
Receivables cleared in foreign currency or in Lei,
depending on the currency exchange rate
The receivables and debts in foreign currency resulted
as an effect of the company transactions are recorded
in the bookkeeping both in Lei, and in foreign
currency.
The transactions in foreign currency are recorded
initially at the exchange rate notified by the National
Bank of Romania, on the date of performing the
operation.
At the end of each month, the receivables in foreign
currency are evaluated at the exchange rate on the
currency market on the last banking day of that
month, as notified by the National Bank of Romania.
The exchange rate differences are recognized in the
accounts as revenues or expenses from exchange rate
differences, as applicable.
At the end of each month, the receivables expressed
in lei, which are cleared depending on the exchange
rate of a certain currency are evaluated at the
exchange rate of the currency market, as notified by
the National Bank of Romania for the last banking
day of the month. In this case, the differences that
arise are recognized in the accounts as financial
revenues or expenses, as applicable.
The differences in the exchange rate that arise at
the time of settlement of the receivables in foreign
currency at exchange rates differing from the ones
used for those initially recorded in the bookkeeping
must be recognized in the same month when they
arise, as revenues or expenses from differences in the
exchange rate.
The differences in value arising at the time of
settlement of the receivables in lei, at an exchange rate
differing from the exchange rate used for recording
them initially during the month, or from the ones
recorded in the bookkeeping must be recognized in
the same month when they arise, as other financial
revenues or expenses.
The receivables with prescribed past due dates are
deducted from the accounts only after all legal steps
have been made for their settlement.
The accounting of uncertain receivables is kept
directly in the account 4118 – Uncertain customers or
customers in dispute at law.
In the yearly financial statements the receivables
are evaluated and presented at the value likely to be
received.
Whenever it is estimated that a receivable is not to
be fully received, adjustments for depreciation are
recorded at the level of the amount which can no
longer be recovered.
The evaluation in the financial statements of the
receivables expressed in foreign currency and of the
receivables to be cleared in lei against the exchange
rate of a certain currency notified by the National
Bank of Romania, as valid on the date when the
financial year ends.
Accounting policies on short-term liquidities
and investments
Liquidities in foreign currency and in lei
The current bank accounts are kept in analytical
accounts for each bank.
The interest to receive in relation to the liquidities
in the bank accounts is recorded distinctly in the
accounts.
The interest to pay and to receive for the financial
year underway is recorded as financial revenues or
expenses, as applicable.
The accounting of liquidities in bank accounts/
cashier’s desk and their movement as a result of
payments made and received is kept distinctly in lei
and in foreign currency.
The operations related to the payments received and
made in foreign currency are kept in the accounting
at the exchange rate valid on the day of performing
the operation, as notified by the National Bank of
Romania.
The foreign currency selling-purchasing operations,
including the ones performed as part of agreements
with clearance on due date are recorded in the
accounts at the exchange rate used by the commercial
bank where the currency bid is performed, without
generating exchange rate differences in the accounts.
At the end of each month, the liquidities in foreign
currency and other treasury values are evaluated at the
exchange rate on the currency market valid on the last
banking day of that particular month, as notified by
the National Bank of Romania.
All variations occurring in the exchange rate are
recognized in the accounts as revenues or expenses
from changes in the exchange rate.
Treasury advances
For certain payments in cash the company grants
treasury down payments to its employees and third
parties.
Such down payments are justified based on a
settlement report prepared by the down payment
beneficiary, with attached support documents except
for the daily allowance, which requires no attachment
of support documents.
In case of payments in foreign currency made from
treasury down payments, the related expenses are
recognized in the accounts at the exchange rate in
force on the date of performing the related financial
operations, or at the exchange rate in force on the
day of settlement of the down payment, for those
expenses that are not accompanied by supporting
documents, e.g. for the daily allowance granted for
travels.
On the date of the balance sheet the amounts
representing treasury down payments, granted
and not settled yet, are recorded in the accounts
of miscellaneous debtors or receivables related to
manpower, depending on the type of receivable.
Accounting policies on the recognition of
expenses
All expenses are recognized in the statement of the
global result of the company when it is possible to
evaluate in a reliable manner a reduction of the future
economic benefits connected to a decrease of an
asset of to a debt increase. As a result, the recognition
of the expenses takes place at the same time as the
recognition of the debt increase and the decrease of
the assets.
The company’s expenses are the amounts paid or
payable for:
▪ consumptions of inventories;
▪ work performed and services supplied for the
benefit of the company;
▪ expenses for employee benefits;
▪ execution of legal or contractual obligations;
▪ provisions;
▪ amortizations;
▪ adjustments for depreciation or loss of value.
The accounts of the expenses is kept by types of
expenses, as follows:
▪ operational expenses;
▪ financial expenses;
▪ extraordinary expenses, including only losses
from calamities and other extraordinary events.
The operational expenses comprise:
▪ expenses with raw materials and consumables,
the purchase costs of materials which are not
inventories, the countervalue of used utilities, the
cost of sold goods;
ANNUAL REPORT 2015
51
▪
▪
▪
expenses with manpower – employee benefits
(salaries, insurance and social security and other
manpower-related expenses in charge of the
company: expenses with training, meal tickets and
social expenses);
expenses with: services executed by third parties,
insurance premiums, rents, protocol, advertising
and publicity, transportation of goods and
personnel, reassignments of personnel, bank
services, mail and telecommunications, etc.;
other operational expenses: losses from receivables
and various debtors, fines and penalties, etc.
Employee Benefits
The employee benefits are various counter-services
granted by the company in exchange for the service
performed by the employees.
During its normal course of activity, the company
pays the Romanian state, on behalf of its employees,
the contributions due for pensions, health insurance
and unemployment. The expenses with these
payments are recorded in the profit or loss during the
same period of time when the related salary expenses
were made.
All the company’s employees are members of the
Romanian state pension plan.
In SC AEROSTAR SA the following categories of
employee benefits are recognized:
▪ short-term benefits such as salaries and
contributions to social security, paid yearly
vacation and paid medical leave and bonuses (if
paid within 12 months from the end of the period),
meal tickets and other benefits provided in the
collective labour agreement: post-employment
benefits, such as the benefits related to retirement;
▪ benefits for termination of the labour agreement
– negotiated periodically, as provided in the
collective labour agreement.
The financial expenses are:
▪ expenses related to financial investments disposed
of;
▪ unfavourable changes in the exchange rates;
▪ interest-related expenses;
▪ other financial expenses.
The financial expenses comprise the expense with
the interest related to loans, the loss from recognized
depreciation related to financial assets.
All the borrowing costs not directly attributable to the
purchase, construction or the production of assets
with long manufacturing cycles are recognized in the
profit or loss account, by using the actual interest
method.
In the preparation of the financial statements, the
transactions in other currencies than the currency
of the company operations are recognized at the
exchange rates on the dates of the corresponding
transactions.
At the end of each reporting period, the elements
expressed in foreign currencies are converted into the
exchange rates applicable on that day.
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AEROSTAR S.A.
The revenues or losses from changes in the exchange
rates are reported on a net basis.
The synthetic expenses accounts are developed on
the structure of analytical accounts, according to
the accounting regulations in force (the general plan
of accounts) and depending on the company’s own
needs, subject to the management approval.
The expenses of the financial year also comprise
the provisions, amortizations and adjustments for
the depreciation or the loss of value, the expenses
with tax on the current and deferred profit and other
taxes, calculated according to the law, which are kept
distinctly, according to their nature.
Accounting policies on the recognition of
revenues
The revenues are recognized in the statement of
the global result of the company when it is possible
to evaluate in a reliable manner an increase of the
future economic benefits related to an asset increase
or a debt decrease. Consequently, the revenues are
recognized at the same time as the recognition of the
asset increase or debt decrease.
The revenues also include both the amounts received
or to be received as such and the revenues from any
other source.
The revenues are classified as follows:
▪ Revenues from operations;
▪ Financial revenues;
▪ Extraordinary revenues
Revenues are recognized based on accrual accounting.
The synthetic revenue accounts are developed on
the structure of the analytical accounts, according to
the accounting regulations in force (the general plan
of accounts) and depending on the company’s own
needs, subject to the management approval.
The revenues are evaluated at the fair value of the
countervalue received or likely to be received. The
sales revenues are decreased in case of returns,
discounts and other similar discounts.
Sales of goods
The revenues from the sale of goods are recognized
when all of the following conditions are met:
▪ the company has transferred to the buyer the risks
and benefits related to the ownership title for the
goods;
▪ the company keeps neither the continued
managerial involvement down to the level usually
associated to the ownership title, nor the effective
control over the goods sold;
▪ the value of the revenue can be accurately
evaluated;
▪ the economic benefits related to the transaction
are likely to be directed to the entity;
▪ the costs incurred or to be incurred in relation to
the transaction can be measured precisely.
In particular, the revenues obtained from the sales of
goods are recognized when the goods are delivered
and the legal title is transferred.
Supply of services
The revenues from the supply of services are
recognized in the profit or loss account proportionally
with the status of execution of the transactions, as
on the report date. The execution status is assessed
in relation to the review of the work carried out. In
case the result cannot be estimated, the revenues are
recognized down to the level of the recoverable costs.
Revenues from rent
The revenues from rent related to the investment
property are recognized in the profit or loss account
in a linear way throughout the rental agreement.
The financial revenues comprise revenues from
interest and revenues from dividends.
The revenues from interest are recognized in the
profit and loss account based on accrual accounting,
using the actual interest method. The revenue from
interest generated by a financial asset is recognized
when the company is likely to obtain economic
benefits and when such revenue can be measured
precisely.
The revenues from dividends generated by
investments are recognized when the shareholder’s
right to receive the payment is established (provided
that the economic benefits are likely to be directed
towards the Group and the value of the revenues can
be measured precisely). The company records the
revenues from dividends at their gross value which
includes the tax on dividends (when applicable),
which is recognized as current expense with the profit
tax.
Accounting policies on provisions
Provisions
The provisions are recognized when the company has
a current obligation (legal or implied) as a result of a
past event, it is likely that the company is requested
to pay such obligation and a precise estimate of the
obligation can be made.
The amount recognized as a provision is the best
estimate of the countervalue needed to settle the
actual obligation at the end of the reporting period,
taking into account the risks and uncertainties around
this obligation.
Provisions are accounted on types, depending on the
nature of the function, the purpose thereof or the
scope they were set up for.
Warranty Accounting
The company sets up the warranty provision when
the product or service covered by the warranty is sold.
The value of the provision is based on historical or
contractual information about the warranty granted
and is estimated by weighing all possible results
against the probability of each to occur.
Provisions for risks and expenses
When risks and expenses are identified which the
events occurred or in progress make them probable,
and whose object is precisely determined, but
uncertain as to their occurrence, the company covers
such risks by setting up provisions.
The provisions for risks and expenses are set up for
elements such as:
▪ litigations, fines, penalties, compensations,
damages and other uncertain debts.
▪ other actual obligations, whether legal or implicit.
Provisions for decommissioning of tangible
immobilizations
Upon the initial recognition of a tangible
immobilization, an estimate is made for the value
of the disassembly costs, the costs for the item
removal and restore the site where it was located, as
a consequence of using the item for a certain period
of time.
Accounting policies on profit taxation
The profit taxation expenses represent the aggregate
amount of taxes to be paid currently, as well as the
deferred taxes.
Current tax
The currently payable tax is based on the taxable
profit made throughout the year. The accounting
profit differs from the profit reported in the annual
statement on the profit tax because of the elements of
revenues or expenses which are taxable or deductible
in certain years, as well as the elements which are
never taxable or deductible.
The company’s obligation in terms of current taxes
is calculated by means of the tax rates adopted at the
end of the reporting period.
Deferred tax
The deferred tax is recognized based on the
temporary differences between the accounting value
of the goods and of the debts from the related
financial statements and the taxation bases used for
calculating the taxable profit. The deferred tax debts
are recognized in general for all the temporary taxable
differences.
The asset regarding the deferred tax is recognized in
general for all the temporary deductible differences
up to the time when such taxable revenues, to which
deductibility was applied, can be used.
The accounting value of the assets, to which the
deferred tax is applied, is reviewed at the end of each
reporting period and limited to the point from where
it is no longer expected to have enough taxable profits
to allow the total or partial recovery of the assets.
The assets and the debts related to the deferred taxes
are measured at the level of the taxes proposed to
be applied during the period of time established for
recovery of the debt or to make the asset, based on
the level of taxes (and fiscal laws) already in force or
about to enter in force by the end of the reporting
period. The measurement of the deferred tax debts
and assets mirrors the tax-related consequences
likely to result from the way in which the company
anticipates, at the end of the reporting period, to
recover or settle up the accounting value of its assets
and debts.
ANNUAL REPORT 2015
53
Both the current tax and the deferred tax are
recognized in the profit and loss account, except
when they refer to elements recognized directly in
the company’s own capital, when the current tax
and deferred tax are also recognized directly in the
company’s own capital.
Accounting policies on subsidies and other nonreimbursable funds
The category of subsidies distinctly comprises:
▪ government subsidies;
▪ non-reimbursable loans of a subsidy nature;
▪ other amounts received at subsidies.
Recognition
The subsidies are recognized at their approved value.
The subsidies received as non-monetary assets are
recognized at fair value.
Government subsidies
The government subsidies are initially recognized
as deferred value at the fair value when there is a
reasonable assurance that such revenue is obtained
and the company will comply with the terms
associated to the subsidy.
The subsidies compensating the company for the
expenses made are recognized in the profit and loss
account in a systematic manner, during the same
timeperiod when the expenses are recognized.
The subsidies compensating the company for the
cost of an asset are recognized in the profit and
loss account in a systematic manner throughout the
lifetime of the asset.
Subsidies for investments
The subsidies for assets, including the non-monetary
subsidies at fair value are accounted as subsidies for
investments and are recognized in the balance sheet
as deferred revenue.
The deferred revenue is accounted in the profit and
loss account at the same time when the expenses with
the amortizations or with the write-off or disposal of
the assets are accounted.
The return of a subsidy related to an asset is registered
by decreasing the balance of the deferred revenue
with the reimbursable amount.
Subsidies related to revenues
The revenues-related subsidies are recognized in a
systematic manner as revenues of the timeperiods
corresponding to the related expenses, which such
subsidies are about to compensate.
In case during a time period subsidies are received on
the account of expenses which were not made yet,
the subsidies received do not represent revenues of
the respective current period. These are recognized
in the accounts as advance revenues and are resumed
in the profit and loss account while such expenses are
being made in their compensation.
The return of a subsidy related to revenues is made
by reducing the deferred revenues.
54
AEROSTAR S.A.
If the reimbursed amount exceeds the deferred
revenue or if there is no such revenue, the surplus,
i.e. the reimbursed integral value, is recognized
immediately as an expense.
Accounting policies on establishing the result
per share
The company provides information on the result per
basic share. Such result per basic share is calculated by
dividing the profit or loss attributable to the holders
of ordinary shares of the company at the weighted
average of the ordinary shares circulating during that
period of time.
Accounting policies on financial instruments
A financial instrument is a contract generating
simultaneously:
▪ a financial asset for an entity
▪ a financial debt or a company capital instrument
for another entity.
The company will recognize an asset or a financial
debt in its financial statements if and only if the
company becomes part of the contractual provisions
of the respective instrument.
A standard purchase or sale of financial assets will
be recognized and derecognized, as applicable, using
the accounting method on the date of concluding the
transaction or on the date of its settlement.
All the financial assets and liabilities are recognized
initially at fair value plus, in case of a financial asset
or of a financial liability which is not assessed at fair
value in its profit and loss account, the transaction
costs directly assignable to the acquisition or to the
issue of the asset or of the financial liability. The
securities without transactions are evaluated at their
historic cost, minus any possible adjustments for loss
of value.
The company compensates a financial asset with a
financial liability if and only if:
▪ it has the legal right to proceed as such, and
▪ it intends to settle it on a net basis, or
▪ to make the asset and to pay off the debt
simultaneously.
A financial asset is depreciated when its accounting
value is higher than its estimated recoverable value.
On the date of each balance sheet the company
determines the existence of any depreciation
indications.
The accounting value of the asset must be reduced
down to the level of the estimated recoverable value
and the loss will be included in the profit and loss
account for the respective time period.
The loss from depreciation is the difference between
the accounting value and the updated value of the
estimated future cash flows.
In the application of its accounting policies, the
company issues procedures, instructions and work
dispositions.
NOTE 4. TANGIBLE IMMOBILIZATIONS
Gross values
On 1 January 2015
entries, of which:
Technical
equipment
Tangible
and transport Other tangible immobilizations Real estate
Land Constructions
vehicles immobilizations
in progress investments
43,341
2,955
65,592
27,268
258
141
76
32,258
8,526
14
145,759
63,016
1,175
(32)
47,439
17,271
3
(88)
92,775
-
28,346
(30,378)
1,956
(1,175)
7,365
17,271
3
(30,498)
178,280
- by institutionalized
subsidies
transfer
exits
On 31 December 2015
Amortization
On 1 January 2015
entries, of which:
- by institutionalized
subsidies
transfer
exits
On 31 December 2015
Total
27,966
380
399
Technical
equipment
Tangible
and transport
Other tangible immobilizations Real estate
Land Constructions
vehicles immobilizations
in progress investments
Total
-
3,278
1,849
13,918
9,536
52
73
-
884
233
18,132
11,691
-
262
(6)
2,648
(61)
20
-
-
-
2,930
(67)
-
5,121
23,393
125
-
1,117
29,756
NET ACCOUNTING VALUE OF TANGIBLE IMMOBILIZATIONS ON 31 DECEMBER 2015
Gross value
Amortization
Adjustments for
loss of value
-
-
Net
accounting
value
1. Land
28,346
2. Constructions
47,439
5,121
-
42,318
3. Technical equipment and transport vehicles
92,775
23,393
-
69,382
399
125
-
274
7,365
1,117
-
6,248
4. Other tangible immobilizations
5. Real estate investments
6. Tangible immobilization in progress
Total (1+2+3+4+5+6)
The tangible immobilizations are grouped by the
company in the following classes of assets of the
same nature and similar uses:
▪ Land;
▪ Constructions;
▪ Technical
equipment
(plant,
machinery,
installations);
▪ Means of transport;
▪ Other tangible immobilizations;
▪ Real estate investments.
When determining the gross acounting value of
the tangible immobilizations, the company used
the historical cost method. No reevaluations of the
tangible immobilizations were made.
On 31.12.2015, the fair value of the tangible
immobilizations was not significantly different from
the accounting value.
28,346
1,956
-
-
1,956
178,280
29,756
-
148,524
The tangible immobilizations are amortized by the
company using the linear method throughout the
estimated useful life, as follows:
▪ constructions
30-50 years
▪ technological equipment
4-25 years
▪ means of transport
4-18 years
▪ other tangible immobilizations
2-18 years
▪ real estate investments
25-50 years
The useful lifetimes are established by committees of
specialists from the company.
The fiscal operational durations of the tangible
immobilizations are stipulated by the fiscal legislation
on assets.
The useful lifetimes of the tangible immobilizations
were revised at the end of the financial year 2015.
The company did not purchase assets from business
combinations, nor did it classify assets for future sale.
ANNUAL REPORT 2015
55
As on the date of transition to IFRS, the company
estimated and included in the cost of tangible
immobilizations the estimated costs for dismantling
and relocating the assets, as well as costs for site
restoration at the end of the useful lifetime. These
costs were reflected in the set-up of a provision, which
is recorded in the profit and loss account throughout
the lifetime of the tangible immobilizations, by
inclusion in the amortization expense.
To estimate the amount of this provision, a value
update rate of 5% was used (reflecting the value
estimates of money over time), a level recommended
by the Europeran Union for the construction of EU
financed projects.
The revision of the estimates for the decommissioning
and restoration provision is determined by the annual
revision of the dismantling costs. The company’s
board of specialists designated to review yearly any
changes to the estimates analyzed at the end of the
financial year 2015 if the initial estimates of the
dismantling costs were adequate.
The amortization expenses are recognized in the
profit and loss account by using the linear method
of calculation.
The amortization of an asset begins when the asset is
avaiable for use (i.e. when the asset is in the location
and condition necessary to operate as wanted by
the management) and ends on the day when the
asset is reclassified in another category or when it is
derecognized.
The amortization does not end when the asset is not
in use.
The land and buildings are separable assets, and their
accounts are kept separately, even when they are
acquired together.
The land has an unlimited useful lifetime and,
therefore, is not submitted to amortization.
In accordance with the provisiosn of IAS 36 Impairment of assets, the company proceeded to the
identification of any signs of asset depreciation, using
internal sources.
This analysis revealed that:
▪ the economic performance of the assets is good,
compared to the forecasted performance, all the
immobilizations in operation bring benefits to the
company
▪ in 2015 no changes occurred with adverse effects
on the extent and manner in which the assets are
used, nor such modifications are expected in the
near future.
To conclude, the tangible immobilizations in
the balance sheet account on 31.12.2015 are not
depreciated, and no adjustments were made for the
depreciation thereof.
The surplus from reevaluation corresponding to
tangible immobilizations, in the amount of 7,350
thousand lei, earning obtained while this category
of immobilizations was amortized, was capitalized
by direct transfer in the result carried forward,
representing the surplus obtained from reevaluation
reserves.
The gross accounting value of the fully amortized
tangible immobilizations which were still in operation
on 31 December 2015 is 1,030 thousand lei.
As on 31.12.2015 no mortgages were set on tangible real estate assets in the property of AEROSTAR S.A.
În December 2015, seven buildings with a gross accounting value of 1,175 thousand lei, were transferred from
the category Real estate investments into the category Tangible immobilizations as a result of their use being modified by
AEROSTAR, that is the purpose for which they were classified into real estate investments came to an end on the
date of transition to IFRS – into rental to third parties.
a) Increases in gross values of the tangible immobilizations, achieved by:
63,016
▪ acquisition of land
380
▪ acquisition of technical equipment, CNC machinery, modernization of buildings
30,378
▪ capitalization of expenses related to investments in progress, of which:
32,258
• capitalization of expenses incurred for investments fully covered from own sources
14,987
• capitalization of expenses made for the “Aerotraining” project
121
• capitalization of expenses made for the project “Consolidation and sustainable
17,150
development of the mechanical processing and painting sectors by performative investments”
b) Decreases in gross values of tangible immobilizations, achieved by:
30,498
▪ completion of investments in progress
30,378
▪ derecognition of certain tangible immobilizations, due to the fact that the company
no longer expects future economic benefits from their use.
120
NOTE 5. INTANGIBLE IMMOBILIZATIONS
Gross values
On January 1, 2015
Inputs, of which:
- by institutionalized subsidies
outputs
On December 31, 2015
56
AEROSTAR S.A.
Development
expenses
Licenses
Other intangible
immobilizations
Total
-
2,478
177
2,655
95
949
189
1,233
-
869
-
869
95
9
-
104
-
3,418
366
3,784
Amortization
On January 1, 2015
Inputs, of which:
- corresponding to inputs by
institutionalized subsidies
exits
On December 31, 2015
Development
expenses
-
Licenses
1,033
Other intangible
immobilizations
61
Total
1,094
95
635
57
787
-
132
-
132
95
8
-
103
-
1,660
118
1,778
NET ACCOUNTING VALUE OF INTANGIBLE IMMOBILIZATIONS ON DECEMBER 31, 2015
Gross value
1. Development expenses
2. Licenses
3. Other intangible immobilizations
Total (1+2+3)
Amortization
Adjustments for loss
of value
Net accounting
value
95
95
-
-
3,418
1,660
-
1,758
366
118
-
248
3,879
1,873
-
2,006
The category of intangible immobilizations includes the following classes of assets of similar nature and use:
• Development expenses
• Licenses
• Other intangible immobilizations
The IT programmes are registered in other intangible immobilizations.
The estimated useful lifetimes of intangible immobilizations are established in years.
The useful lifetimes are established by committees of specialists from the company.
The fiscal durations of operation of the intangible immobilizations are stipualted by the fiscal legislation on assets.
The expenses with amortization are recognized in the profit or loss account using the linear method of calculation
for an estimated duration of maximum 3 years.
The intangible immobilizations in the balance sheet account as on 31.12.2015 are not depreciated and no
adjusrtments were made for the depreciation thereof.
When determining the gross accounting value of the intangible immobilizations, the company uses the historical
cost method. No reevaluations of the intangible immobilizations were made.
On 31.12.2015, the fair value of the intangible immobilizations is not different from the accounting value.
The value of the completely amortized software licenses on 31 December 2015 and which are still in use is 271
thousand lei.
The surplus from reevaluation corresponding to the software licenses, in the amount of 711 thousand lei, an
earning obtained as this category of immobilizations was amortized, was capitalized by direct transfer in the result
carried forward, representing the surplus obtained from reevaluation reserves.
All the intangible immobilizations recorded in the balance sheet account as on 31 December 2015 are the property
of AEROSTAR.
a) Increases in gross values of intangible immobilizations were obtained by:
▪ Capitalization of the development expenses made for the completion of tasks
provided in the development programme, fully financed by Aerostar, which consisted
in the qualification of new special processes, inteded to meet the manufacturing
requirements for aviation products
▪ Acquisition of software licenses, of which:
• acquisition of licenses for the integral management of tooling,
design, programming (in projects with European financing).
▪ Development of the IT production management system.
In 2015 no internally generated licenses were registered, nor acquired by business combinations.
The software licenses acquired by institutionalized subsidies were evaluated after
recognition in accordance with the cost-based model.
b) Decreases in gross values of intangible immobilizations were obtained by:
• settlement and amortization of the tasks in the development programme,
made and finalized in the analyzed period
• derecognition of certain intangible immobilizations as the company
no longer expects future benefits from their use
In 2015 no assets were classified as held for sale in accordance with IFRS 5.
ANNUAL REPORT 2015
1,233
95
949
869
189
104
95
9
57
NOTE 6. FINANCIAL IMMOBILIZATIONS
Shares held in
affiliated entities
Other
immobilized
securities
On 1 January 2015
Long term loans
Total
14
92
371
477
Increases/ Decreases
-
-
(265)
(265)
On 31 December 2015
14
92
106*)
212
*) The company registers in financial immobilizations the remaining balance (106 thousand lei) from the loans
granted by AEROSTAR to an employee, with due date in over 12 months, for which AEROSTAR charges
interest.
The details on the entity’s investments in other companies as on 31.12.2015 are the following:
Subsidiary name /
Registered headquarter
Main activity
SC Airpro Consult SRL - activities of
Bacau
contracting
9, Condorilor Street
manpower on a
temporary basis
SC Foar SRL Bacau
- rental and
leasing of other
machinery,
equipment and
tangible goods
SC Aerostar
- manufacturing
Transporturi Feroviare of hoisting
S.A Bacau **)
and handling
equipment
Financial information of the
last financial year (2014) which
approved financial statements of the
subsidiaries
Registered
capital
Net
(thousand
of the company Reserve
profit
lei)
10
10
45
51
Value
shares
held by
Aerostar
No. of
shares
Voting
rights
(%)
100
100%
408
51%
4
8
1,639
320
9,150
45.75%
92
200
38
4
106
218
1,722
375
TOTAL
**) the activity of the company is suspended until 31 December 2015.
The contribution of AEROSTAR in these companies is recorded depending on cost; there is no active market for
such securities, or other information on recent market transactions.
In 2015, the company recorded no modifications i.e. no increases/decreases as to the stake-holding percentage,
maintaining the same influence as in 2014.
All companies in which AEROSTAR holds shares are registered in Romania.
NOTE 7. TAX ON PROFIT
The profit tax corresponding to the reported time period comprises the current tax and the deferred tax. The profit
tax is recognized in the statement of the profit or loss, or directly in the company capitals if the tax relates to the
capital items.
Current tax on profit
The current tax is the tax payable in relation to the profit achieved in the current period, as determined based on
the applicable fiscal regulations at the reporting date. The profit tax rate applicable on 31.12.2015 was 16% (the
same rate that applied for the financial year 2014).
Gross accounting profit
Expenses with current tax on profit
58
AEROSTAR S.A.
31 December 2015
59,554
9,243
Reconciliation of accounting profit with fiscal profit
Accounting revenues
Accounting expenses
Gross accounting profit
Tax (16%)
Tax reductions
Tax on final profit
Actual average tax rate, calculated on
gross accounting profit
351,842
292,288
59,554
9,529
9,529
16%
The main factors which affected the rate of taxation
were:
- Non-taxable revenues from the recovery of nondeductible expenses (where the revenues from
resuming certain provisions for guaranties and of
other provisions represented a significant part);
- Fiscal facilities representing the tax exemption on
profit corresponding to the investments made in
accordance with Art.19^4 of the Fiscal Code;
- Non-deductible expenses in fiscal terms (expenses
concerning the set-up or increase of certain
provisions which are non-deductible fiscally,
expenses with fiscally non-deductible accounting
amortization; losses from receivables a.o.)
The deferred tax is determined for the temporary
differences arising between the fiscal basis of
calculation for the tax on assets and liabilities and
their accounting value. The deferred tax is calculated
using the tax rates expected to apply to the temporary
differences when they are resumed, under the law
applicable at the reporting date. The company
estimated and recorded liabilities from deferred tax
related to the immobilized assets and reserves and
recognized receivables regarding the deferred tax
related to the provision for guaranties granted to
Fiscal revenues
Fiscal expenses
Fiscal profit
Fiscal tax (16%)
Differences
332,420
247,910
84,510
13,522
4,279
9,243
15.52%
-19,422
-44,378
+24,956
+3,993
+4,279
-286
customers, other provisions for risks and expenses, as
well as to adjustments for depreciation of customer
receivables.
Deferred tax recognized on account of the result
Receivables related to deferred tax,
4,588
balance as on 01.01.2015
Revenues from tax on deferred profit
2,790
Expenses with tax on deferred profit
(832)
Receivables related to tax on deferred
profit balance as on 31.12.2015
6,546
Tax on deferred profit recognized on account of
company capitals
Debts related to the tax on deferred profit
recognized on account of company
capitals, balance as on 01.01.2015
6,524
Set-up of debts from deferred tax/
Decrease of receivables from deferred tax 3,529
Decrese of debts from deferred tax
(169)
Debts related to tax on deferred profit
recognized on account of company
capitals, balance as on 31.12.2015
9,884
NOTE 8. INVENTORIES
Raw materials
Consumables
Other materials
Packages
Finished products
Products in progress
Goods
Adjustments for depreciation of inventories
TOTAL
The inventories are evaluated at cost value or net
achievable value, whichever is lower.
The net achievable value is the estimated sale price of
inventories minus all estimated costs of completion
and the necessary costs for sale.
The cost of the inventories includes: purchase costs,
conversion costs as well as other costs incurred to
bring the inventories in their current condition and in
the present location.
At the release from accounts, the inventories are
evaluated and recorded in the accounting system by
applying the Average Weighted Cost method.
31.12.2015
10,981
17,458
19
6
11,564
19,912
4
(16,382)
43,562
31.12.2014
6,732
14,108
7
3
11,441
14,120
6
(9,037)
37,380
The value adjustments are made on a regular basis,
based on the findings of the inventory committees
and/or managers of the facility, in order to present
the assets at the lower value between cost and net
achievable value.
The Company considers as depreciated those goods
which are older than the storage period established by
internal decision of the Board of Directors.
The total value of the inventories recognized as expense
during the reported timeperiod is 104,658 thousand lei.
The company has no pledge set on inventories.
ANNUAL REPORT 2015
59
NOTE 9. FINANCIAL INSTRUMENTS
A financial instrument is any contract generating
simultaneously a financial asset for an entity and a
financial debt or a company capital instrument for
another entity.
The financial assets and debts are recognized when
AEROSTAR SA becomes part of the contractual
provisions of the instrument.
On the reporting date AEROSTAR S.A. does not
hold:
- financial instruments kept for making transactions
(including derived instruments)
- financial instruments kept till due date
- financial instruments available for sale
The financial assets of AEROSTAR S.A. include:
- cash and cash equivalents
- commercial receivables
- commercial effects received
- immobilized receivables (customer-guaranties)
- loans granted with interest
The financial debts of AEROSTAR S.A. include:
- commercial debts
- commercial effects to pay
On the reporting date AEROSTAR does not have
financial debts concerning financial leasing, overdrafs
and long-term bank loans.
The main types of risks generated by the financial
instruments held, to which AEROSTAR S.A is
exposed are:
a) credit risk
b) liquidity risk,
c) currency risk,
d) interest rate risk.
a) Credit risk
The credit risk is the risk that one of the parties
involved in a financial instrument generates a financial
loss for the other party as a result of the failure to
meet a contractual obligation, related mainly to cash,
cash equivalents and commercial receivables.
The cash and cash equivalents are placed only at
first-rank bank institutions considered to have a high
solvency rate.
The commercial credit risk is evaluated and managed
for each business partner based on their credit rating
review, including the country risk for the country
where the customer operates.
Based on the credit rating analysis, the customers are
assigned a maximum commercial credit level (as value
and duration), and the credit rating re-evaluations and
credit limits granted are monitored and reviewed on
a regular basis.
In certain cases, specific instruments will be requested
for credit risk mitigation (down payments, letters of
bank guarantee for customers with good payment
records, confirmed letters of credit for export).
AEROSTAR has no significant exposure toward a
single partner and records no significant concentration
of receivables on a single geographical area.
Exposure to credit risk
The accounting value of the financial assets, net of the depreciation adjustments, represents the maximum exposure
to the credit risk. The maximum exposure to the credit risk on the reporting date was:
31.12.2015
31.12.2014
Cash and cash equivalents
Commercial receivables net from depreciation adjustments
Commercial effects received
Immobilized receivables (customer-guarantees)
Loans granted with interest
101,299
92,426
47,879
31,879
28
-
439
642
107
371
Total
149,752
125,318
The maximum exposure to the credit risk on geographical areas for commercial receivables net of the depreciation
adjustments is:
31.12.2015
31.12.2014
2,385
4,378
Euro zone countries
19,589
18,368
Great Britain
10,523
7,434
4,824
642
Domestic market
Other European countries
Other regions
10,558
1,057
Total
47,879
31,879
60
AEROSTAR S.A.
Depreciation adjustments
The timeframe structure of gross commercial receivables on the reporting date:
In due time
Adjustments for
depreciation
31.12.2014
31,407
-
Adjustments for
depreciation
31.12.2015
Gross value
31.12.2015
Gross value
31.12.2014
47,141
-
Past due, total of:
992
254
1,092
0-30 days
630
-
471
-
31-60 days
12
-
-
-
61-90 days
-
-
-
-
91-120 days
96
-
-
-
4
4
3
3
250
250
618
617
48,133
254
32,499
620
Over 120 days
Over 1 year
Total
620
The table below shows the motion in the adjustments for depreciation of the commercial receivables throughout
the year:
31.12.2015
31.12.2014
620
741
34
41
(400)
(162)
254
620
Balance on 1 January
Adjustments set for depreciation
Adjustments for depreciations resumed as revenues
Balance on 31 December
Based on historical data for non-payment, AEROSTAR considers that, except the above, no recognition of
depreciation adjustments is necessary for the commercial receivables which are past due.
On 31.12.2015, 99.50% of the commercial receivable in balance are related to customers with good payment
records.
b) Liquidity risk
The liquidity risk is the risk that AEROSTAR encounters difficulties to meet the obligations associated to the
financial debts which are settled by cash delivery.
AEROSTAR policy regarding this risk is to maintain an optimum level of liquidity so as to pay for the liabilities,
as they become due.
To evaluate the liquidity risk, the treasury cash flows from operations, from investments and from financing
operations are monitored and reviewed weekly, monthly, quarterly and yearly in order to determine the estimated
level of net liquidity modifications.
Also, the specific liquidity indicators are analyzed monthly (general liquidity, immediate liquidity and rate of general
solvency) against the budgeted levels.
Besides, in order to reduce the liquidity risk, AEROSTAR maintains annually a liquidity reserve as a Credit Line
(usable as an overdraft) granted by banks to a maximum limit of 2,500 thousand USD.
The time intervals used to analyze the contractual due dates of the financial debts, with a view to highlighting the
placement of cash flows in due time, are shown in the table below:
Financial debts
Accounting
value
Contractual
cash flows
0-30 days
31-60 days
31.12.2015 Commercial debts
22,215
(22,215)
(17,801)
(3,969)
(445)
38
(38)
(38)
-
-
15,186
(15,186)
(11,589)
(2,404)
(1,193)
-
-
-
-
-
Commercial effects
31.12.2014 Commercial debts
Commercial effects
over 60 days
The cash flows included in the analyses of the due dates are not expected to take place sooner or at significantly
different values.
ANNUAL REPORT 2015
61
On the reporting date AEROSTAR has in its records no financial debts related to financial leasing, bank account
overdraft and long-term bank accounts.
On 31.12.2015 AEROSTAR has in its records no overdue financial debts.
c) Foreign currency risk
The foreign currency risk is the risk that the fair value or future treasury cash flows of a financial instrument
fluctuate because of the changes in the currency exchange rates.
Exposure to the foreign exchange currency risk
AEROSTAR is exposed to the foreign currency risks, as 77% of its turnover recorded in 2015 related to USD and
EUR, while a significant part of the operating expenses relates to LEI.
Thus, AEROSTAR is exposed to the risk of being affected by the exchange rate fluctuations both in its net
revenues and in its financial position, as they are stated in Lei.
The table below shows the exposure to foreign currency risk, based on the financial-accounting values denominated
in foreign currency:
31 December 2015
Thousand EUR
Thousand USD
Thousand GBP
Commercial receivables
2,537
8,201
-
Commercial debts
(893)
(1,919)
(38)
Net exposure in original currency
1,644
6,282
(38)
Thousand EUR
Thousand USD
Thousand GBP
01.01 – 31.12 2015
Received from customers
Payments to suppliers
Net exposure, in original currency
14,531
39,208
-
(10,794)
(15,520)
(420)
3,737
23,688
(420)
Sensitivity analysis
AEROSTAR is exposed mainly to the USD/RON exchange rate variations, taking into consideration the total net
exposure of 29,970 thousand USD recorded in 2015 and the 9% variation of the USD/RON average exchange
rate compared to the beginning of the year.
The table below contains a detailed presentation of the Company’s sensitivity to an average reasonable variation of
5% of the Romanian Leu versus the USD, EUR and GBP currencies.
Year 2015
Total net exposure, in the currency of origin
Average exchange rates
Total net exposure in functional currency
Possible reasonable variations of exchange rates
Effect of the variation in profit and loss account
d) Interest rate risk
For the reporting period AEROSTAR has contracted
a Credit Facility of 5,000 thousand USD, intended for
financing the company’s operations, which includes:
1) A cash sub-limit in the amount of 2,500 thousand
USD, usable as an overdraft, set up to provide at
any given time the necessary financial liquidity
and flexibility (liquidity reserve);
2) A non-cash sub-limit in the amount of 2,500
thousand USD, usable to guarantee for the
contractual commercial obligations by issuing
letters of bank guarantee and import letters of
credit.
62
AEROSTAR S.A.
Thousand EUR
5,381
Thousand USD
29,970
Thousand GBP
(458)
4.44
4.00
6.12
24,347
124,307
(2,818)
+/- 5%
+/- 5%
+/- 5%
+/- 7,048 Thousand LEI
The interest is applicable only for the overdraft
utilized, within the sub-limit of 2,500 thousand USD.
As during the reporting period AEROSTAR did not
use the cash sub-limit of 2,500 thousand USD, the
company revenues and cash flows are independent
from the interest rate variations on the banking
market.
On 31.12.2015, the level of guarantees granted by
AEROSTAR under commercial agreements, by issue
of bank guarantee letters amounts to 2,424 thousand
USD (equivalent to 10,054 thousand LEI).
On 31.12.2015 no mortgages are set on the property
assets owned by AEROSTAR.
NOTE 10. COMMERCIAL RECEIVABLES AND OTHER RECEIVABLES
RECEIVABLES
Commercial receivables
Domestic customers
Foreign customers
Uncertain customers 1)
Adjustments for depreciation of customer receivables
Balance on
31 December 2015
Balance on
1 January 2015
50,085
36,596
2,385
4,378
46,686
31,726
254
620
(254)
(620)
Suppliers-debtors
855
405
Customers – invoices to draw up
131
87
28
-
439
642
13,216
7,993
28
11
1,470
26
17
1,589
841
4,671
6,546
70
431
63,740
1,182
1,667
4,588
42
81
45,231
Effects to receive from the customers
Immobilized receivables
Other receivables, of which:
• Receivables related to manpower and similar accounts, of which:
- salary advance payments granted to employees
• Receivables related to social security budget and state budget,
of which:
- excises to recover related to fuel consumption
• Amounts to receive, of subsidy nature
• Receivables from deferred profit tax
• Interest to receive from bank deposits
• Other receivables
TOTAL
1)
Uncertain customers are recorded in a distinctive mode in the company accounts.
To cover the risk of non-recovery of the amounts representing uncertain receivables, the company recorded
adjustments for depreciation of uncertain customers at the integral value thereof.
When determining the recoverability of a commercial receivable, we took into account the changes occurred in
the customer’s credit rating from the time when the credit was granted till the time of reporting.
The receivables expressed in foreign currency were evaluated at the market exchange rate communicated by the
National Bank of Romania to close the month of December 2015.
The favorable and unfavorable differences between the market exchange rate used for accounts of the receivables
in foreign currency and the market exchange rate communicated by the National Bank of Romania for the end
of December 2015 were recorded in the related revenue or expense account from the exchange rate differences,
as applicable.
ANNUAL REPORT 2015
63
NOTE 11. STATEMENT OF LIABILITIES
Short-term debts
Balance on
Balance on
31 December 2015
1 January 2015
10,434
24,540
Domestic customers-creditors
3,847
146
Foreign customers-creditors
6,587
24,394
24,025
15,187
8,115
6,524
11,484
6,792
Suppliers-invoices not arrived
1,802
1,148
Suppliers of immobilizations
2,624
723
Commercial effects to pay
38
-
1,970
4,231
Other current debts, of which
14,222
12,983
• Debts related to manpower and similar accounts
• Debts related to social security budget and state budget
• Other debts, of which:
– dividends:
- from 2014
- from previous years
1,884
11,186
1,152
804
571
233
1,558
10,923
502
333
333
TOTAL
50,689
56,941
DEBTS
Advance payments received on customers account
Suppliers
Domestic suppliers
Foreign suppliers
Debt with current profit tax
The advance payments received on customers’ account, amounting to 10,434 thousand lei are for aircraft
maintenance and repair work, due to be settled in 2016.
For the accounted debts no mortgages were set.
AEROSTAR has no debts past due to the State Budget.
At the end of December 2015 the company made undertakings as bank guarantee letters in amount of 2,424,000
USD issued in favour of the business partners in accordance with the contractual requirements. AEROSTAR
registered provisions for these undertakings.
The exchange rate differences, favourable or unfavourable, between the market exchange rate at which the debts
in foreign currencies are registered and the market exchange rate communicated by the National Bank of Romania
for the end of December 2015, were registered in the corresponding account – revenues or expenses – from the
exchange rate differences, as applicable.
The dividends in balance as on 31 December 2015, in amount of 804 thousand lei represent:
• 571 thousand lei- the amount to be transferred by AEROSTAR for the payment of dividends corresponding to
2014, for the shareholders who did not collect them from CEC Bank S.A. desks (the paying agent designated
by AEROSTAR).
On 8 February 2016, AEROSTAR informed the company shareholders, by a news release, the decision of the
Board of Directors to extend the deadline for the payment of dividends corresponding the financial year 2014,
established initially for the date 23.04.2016, until 31.12.2016.
• dividends from the years 2012 and 2013, in amount of 233 thousand Lei, paid by Aerostar, but not collected by
the shareholders, for reasons pertaining to them.
By the same news release, AEROSTAR informed the shareholders that as of 10.02.2016 until 31.12.2016, the
payment of dividends not collected, related to the financial years 2012 and 2013 will also be made via Depozitarul
Central.
64
AEROSTAR S.A.
NOTE 12. CASH AND CASH FLOW EQUIVALENTS
At the end of the reporting period the cash and cash equivalents were:
31.12.2015
31.12.2014
Cash
19,353
41,825
Bank deposits
81,888
50,580
Cheques to cash
37
-
Collateral deposits
21
21
101,299
92,426
Cash and cash equivalents in the treasury cash flow statements
The cash comprises the available current amount in the cash account and at banks;
The cash equivalents comprise:
• short-terms bank deposits
• cheques deposited in banks to collect
• collateral deposits set up in accordance with the legal requirements with the Local Customs Department in
Bacau with a view to securing the payment of current customs obligations (customs taxes and VAT)
The treasury balance is influenced by the advance payments and payments received from the customers.
There are no restrictions on the liquidity accounts in the banks.
The value of the credit facilities not used as on 31.12.2015 and avaialbale for future operations is 10,369 thousand
LEI (2,500 thousand USD).
The value of treasury flows allocated for increasing the operating capacity is 10% of the aggregate value of the
treasury cash flows.
NOTE 13. COMPANY CAPITALS
The company capitals in 2015 increased by the amount of 38,720 thousand Lei, representing the difference between
the result of the financial year 2015, in amount of 52,268 thousand Lei and the dividends granted to the company’s
shareholders for the financial year 2014, in amount of 13,552 thousand Lei.
The changes occurred in 2015 in the main elements of the company capitals compared to the year 2014
are:
• The registered capital remained unchanged throughout the year 2015
On 31 December 2015, the registered capital of SC AEROSTAR SA Bacau is 48,728,784 Lei, divided into
152,277,450 shares with a nominal value of 0.32 Lei.
The company’s shareholding on 31.12.2015 is structured as follows:
Shareholder
No. of shares
S.C. IAROM S.A. Bucharest
108,382,523
SIF MOLDOVA Bacau
22,538,040
OTHER SHAREHOLDERS, of which:
21,356,887
Natural persons
14,786,660
Legal persons
6,570,227
Total
152,277,450
•
•
•
Holding percentage %
71.1744
14.8006
14.0250
9.7103
4.3147
100.0
The reserves increased with 20,942 thousand lei on the account of:
o The allocation of the amount of 2,869 thousand Lei from the profit of year 2014 for statutory reserves
o The distribution to reserves of the reinvested profit related to the year 2015, in the net amount of 18,073
thousand Lei
Other capital elements increased with the amount of 3,360 thousand Lei, on the account of the deferred
profit tax, on account of company capitals
The result carried forward:
o Increased with 16,510 thousand lei on the account of the deferred profit tax recognized on the account of
company capitals and the distribution of the profit for 2014 at the beginning of 2015 and of other earnings
o Diminished with the amounts allocated in 2015 from the profit of 2014 for statutory reserves in amount
of 2,869 thousand Lei and for dividends in amount of 13,552 thousand Lei
o the net increase of the result carried forward in 2015 being of 89 thousand Lei.
ANNUAL REPORT 2015
65
The structure of the result account balance carried forward on 31 December 2015, in amount of 57,384 thousand
Lei is:
o 47,902 thousand Lei - result carried forward obtained from the use, on the date of transition to IFRS, of the
fair value as presumed cost
o 1,162 thousand Lei - result carried forward obtained from the registration of the deferred tax liabilities, on
the date of transition to IFRS
o 8,320 thousand Lei - result carried forward, representing a surplus obtained from reevaluation reserves as
the tangible and intangible immobilizations are amortized
• The result of the financial year 2015 (profit) was 52,268 thousand Lei, of which a gross amount of 21,517
thousand Lei was distributed to reserves, as reinvested profit.
NOTE 14. REVENUES
Revenues from sales, of which:
Revenues from sale of products
Revenues from services supplied
Revenues from selling goods
Revenues from renting
Commercial discounts granted
Revenues from other activities
Revenues related to inventories of finished products
and production in progress
Other revenues from operations
Revenues from the production of immobilizations
Total revenues from Operations
31 December 2015
329,764
169,930
156,211
2,980
1,969
(2,828)
1,502
31 December 2014
261,051
129,482
124,156
2,830
1,981
(724)
3,326
7,710
1,697
854
5,758
1,263
848
340,025
268,920
NOTE 15. EXPENSES
Expenses with employee benefits
Expenses with raw materials and consumables
Power supply, water and gas
Other material expenses
Expenses with external services, of which:
Transportation costs
Repairs
Expenses with renting
Other expenses with services supplied by third parties
Amortizations
Increase/decrease of adjustments referring to provisions
Increase/decrease of adjustments for depreciation of inventories
Other operational expenses
Total Expenses with Operations
31 December 2015
89,049
98,859
9,162
12,523
32,672
2,770
14,962
1,026
5,602
12,477
16,238
7,428
3,051
281,459
31 December 2014
82,422
75,564
9,552
10,267
22,578
3,008
6,735
1,106
6,120
11,009
27,329
1,521
4,631
244,873
NOTE 16. FINANCIAL RESULT
Revenues from currency exchange variations
Revenues from interest
Revenues from shares held in subsidiaries
Expenses from currency exchange variations
Financial Profit
66
AEROSTAR S.A.
31 December 2015
10,366
1,297
154
(10,829)
988
31 December 2014
6,184
1,144
86
(6,460)
954
NOTE 17. PROVISIONS
31 December
2014
Total provisions, of which:
Provisions for guarantees granted
to customers
Other provisions for risks
and expenses
Provisions for litigations
Provisions for the employee
benefits
Provisions for decommissioning
of tangible immobilizations
of which:
Long-term provisions
Provisions for guarantees
granted to customers
Other provisions for risks and expenses
Provisions for decommissioning of
tangible immobilizations
Short-term provisions
Provisions for guarantees
granted to customers
Other provisions for risks
and expenses
Provisions for litigations
Provisions for employee benefits
Increases/
Set provisions
Reductions/
Provisions
resumed
31 December
2015
94,458
33,728
17,490
110,696
25,554
18,587
5,728
38,413
48,261
700
11,423
9
8,094
0
51,590
709
3,764
3,709
3,642
3,831
16,179
0
26
16,153
67,044
13,272
10,230
70,086
4,167
46,698
5,800
7,472
3,673
6,531
6,294
47,639
16,179
0
26
16,153
27,414
20,447
7,260
40,610
21,387
12,787
2,055
32,119
1,563
700
3,764
3,951
9
3,709
1,563
0
3,642
3,951
709
3,831
The categories of provisions in balance on 31.12.2015 are:
1. Provisions set up for guarantees granted to customers, as provided in the agreements concluded with the
customers;
2. Provisions for risks and expenses, intended for covering potential obligations to company customers, in
accordance with the specific clauses of the agreements concluded with them;
3. Other provisions for risks and expenses set up for potential obligations to third parties;
4. Provision for covering expenses related to the company obligations to AJOFM (Manpower Occupancy
Agency), as per Gov. Ord. 95/2002;
5. Provision for decommissioning of tangible immobilizations, included in the cost thereof, the value of which
was estimated using an update rate of 5%;
6. Provisions for benefits granted to employees as per the clauses of the applicable Collective Labour Agreement;
7. Provisions for litigations, set up for any indemnities owed to the company’s ex-employees;
The provisions set up in foreign currency were reevaluated in accordance with the applicable regulations, resulting
in a net increase from exchange rate differences in amount of 2,990 thousand Lei.
The company registers contingent debts related to granted letters of bank guarantee in a total amount of 5,310
thousand Lei.
ANNUAL REPORT 2015
67
NOTE 18. TRANSACTIONS WITH AFFILIATED PARTIES
Acquisitions of goods and services
S.C Airpro Consult SRL Bacau
year 2015
7,732
year 2014
7,076
855
859
8,587
7,935
year 2015
year 2014
21
18
4
25
5
23
S.C Foar SRL Bacau
TOTAL
Sales of goods and services
S.C Foar SRL Bacau
TOTAL
Debts
Balance on
31.12.2015
Balance on
31.12.2014
790
647
51
54
841
701
year 2015
42
year 2014
86
S.C Foar SRL Bacau
112
-
TOTAL
154
86
S.C Foar SRL Bacau
TOTAL
Dividends collected by Aerostar
The transactions with the affiliated parties in 2015 consisted in:
• Services provided by SC AIRPRO CONSULT SRL Bacau to SC AEROSTAR SA Bacau for temporary
manpower
• Machinery rental services provided by SC FOAR SRL Bacau to SC AEROSTAR SA Bacau
• Services provided by SC AEROSTAR SA Bacau to SC AIRPRO CONSULT SRL Bacau and SC FOAR SRL
Bacau for space rental and supply of utilities
• Dividends collected by SC AEROSTAR SA Bacau from SC AIRPRO CONSULT SRL Bacau, a company in
which AEROSTAR holds the entire capital stock and from SC FOAR SRL Bacau, a company in which SC
AEROSTAR holds 51% of the registered capital (NOTE 6).
There were no transactions with the company S.C. Aerostar Transporturi Feroviare SA Bacau as this company’s
activity was suspended from November 2012 until December 2015.
NOTE 19. PROFIT PER SHARE
The profit per basic share was calculated based on the profit which can be distributed to the ordinary shareholders
and on the number of ordinary shares:
The diluted result per share is equal to the result per basic share, as the company did not register any potential
ordinary shares.
IN LEI
31.12.2015
31.12.2014
Profit attributable to ordinary shareholders
52,268,445
19,743,624
152,277,450
152,277,450
0.343
0.129
Number of ordinary shares
Profit per share
68
AEROSTAR S.A.
NOTE 20. SUBSIDIES
The subsidies received by Aerostar S.A. comprise:
a) subsidies related to assets
b) subsidies related to revenues
Subsidies related to assets
Subsidies registered as revenues
31.12.2015
10,843
8,459
(287)
(2,187)
16,828
31.12.2014
8,330
2,435
1,432
(1,354)
10,843
a) Subsidies related to assets
The method of presentation of the asset-related subsidies in the financial statements recognizes the subsidy as a
deferred revenue recognized systematically in the profit or loss throughout the useful lifetime of the asset.
Subsidies related to assets
Subsidies registered as revenues related to calculated amortization
31.12.2015
9,831
8,459
(1,462)
16,828
31.12.2014
8,330
2,435
(934)
9,831
The balance of 16,828 thousand Lei represents subsidies related to investments in immobilized assets, to be
registered under revenues corresponding to the calculated amortization.
The subsidies related to the immobilized assets were received for the implementation of 4 investment projects
under 4 non-reimbursable financing agreements:
1. Contract no. 210304/22.04.2010: ”Extension of the manufacturing and assembly capacities for aerostructures
for civil aviation”, performed between April 2010 and October 2012, the value of the subsidy received from the
Ministry of Economy, Trade and Business Environment (MECMA) being of 5,468 thousand Lei;
2. Contract no. 229226/14.06.2012: ”Set-up of a new manufacturing capacity for diversifying production and
export growth”, performed between June 2012 and May 2014, the value of the subsidy received from the
Ministry of Economy, Trade and Business Environment (MECMA) being of 6.011 thousand Lei;
3. Contract no. 5IM/013/24.03.2015: ”Consolidation and sustainable development of the mechanical processing
and painting sectors by high performance investments”, performed between March and December 2015, the
value of the subsidy received from the Ministry of European Funds (MFE) being of 8,299 thousand Lei;
4. Contract no. 129302/28.03.2014: ”Active occupational measures in the aeronautical sector by innovative
professional training”, performed between April 2014 and November 2015, the value of the subsidy received
from the Regional Intermediate Body as part of the Sectorial Operational Program Development of Human
Resources in North-Eastern Region (OIR POSDRU) being of 458 thousand Lei.
b) Subsidies related to revenues
The method of presentation of the revenue-related subsidies in the financial statements recognizes the subsidy
while expenses are made for the current period.
Subsidies registered as revenues while expenses are made for the
current period
31.12.2015
1,012
(287)
31.12.2014
0
1,432
(725)
(420)
0
1,012
The revenue-related subsidies were received for the implementation of the project ”Active occupational measures
in the aeronautical sector by innovative professional training” under the non-reimbursable financing contract
no. 129302/28.03.2014, performed between April 2014 and November 2015, the value of the subsidy received
from the Regional Intermediate Body as part of the Sectorial Operational Programme Development of Human
Resources in North-Eastern Region (OIR POSDRU) being of 1,145 thousand Lei.
All investment projects in immobilized assets and professional training were implemented and finalized in
accordance with the contractual provisions assumed in the non-reimbursable financing contacts.
ANNUAL REPORT 2015
69
NOTE 21. LIABILITIES AND OTHER OFF-BALANCE ITEMS
Aerostar registers in off-balance accounts, the rights, liabilities and goods which cannot be integrated in the
company assets and liabilities, i.e.:
•
•
•
31 December 2015
31 December 2014
Liabilities
o guaranties granted to customers as letters of bank
guarantee
o guarantees received from suppliers – as letters of
bank guarantee
5,310
904
7,754
2
Goods
o inventories such as other materials released for
use (tooling & jigs, personal protective equipment,
measuring and control instruments, technical
library, etc.)
o material values received in custody
o tangible and intangible immobilizations – result
of research & development, purchased through
projects in cofinancing
o material values received for processing/repairs
o other goods off-balance
18,855
1,796
16,666
1,796
1,155
265
169
1,124
265
169
353
163
22
132
Other values off-balance
o debtors cleared from assets, yet still monitored
o material guarantees
NOTE 22. PAY OF DIRECTORS
As on 31 December 2015, the members of the Board of Directors of S.C. AEROSTAR S.A. are:
Item
Surname and first nam
Position
1.
FILIP GRIGORE
President of the Board of Directors
2.
DAMASCHIN DORU
Vice-president of the Board of Directors
3.
TONCEA MIHAIL - NICOLAE
Member of the Board of Directors
4.
NIJNIC MARIN - ILIE
5.
VIRNA DANIEL
In 2015, AEROSTAR did not give advance payments or credits to the members of the Board of Directors, nor did
it undertake any liabilities on their account as a guarantee of any type.
The pay of the Directors is approved by the General Meeting of the Shareholders.
The amount of the fees granted to the members of the Board of Directors in the financial year 2015, on account
of their responsibilities, was 270 thousand Lei.
The company’s shareholders decided in the Ordinary General Meeting held on 10 December 2015 to freeze the
fees of the Directors for the financial year 2016 at the level decided by the ordinary general meeting of 6 July 2012.
General Director,
GRIGORE FILIP
70
AEROSTAR S.A.
Financial Director,
DORU DAMASCHIN
DECLARATION
The undersigned, GRIGORE FILIP, as President of the Board of Directors and General
Director of SC AEROSTAR S.A. and DORU DAMASCHIN, as Vice-president of the Board of
Directors and Financial Director of S.C AEROSTAR S.A., hereby undertake the responsibility for
the preparation of the individual financial statements as on 31.12.2015, and we confirm hereby
that:
a)
All the accounting policies used to draw up the individual financial statements as on
31.12.2015 are in accordance with the International Financial Reporting Standards (IFRS)
adopted by the European Union.
b)
The individual financial statements as on 31.12.2015 provide a fair image and compliant
with the reality of the related assets, liabilities, financial position, of the global result and
the other information related to the activity carried out.
c)
The Report of the Board of Directors for the financial year 2015 comprises an accurate review
of the development and performance of S.C. AEROSTAR S.A., as well as a description of the
main risks and uncertainties specific for the activity performed.
d)
S.C. AEROSTAR S.A. BACAU performs its operations in conditions of continuity.
President of the Board of Directors and General Director,
GRIGORE FILIP
Vice-president of Board of Directors and Financial Director,
DORU DAMASCHIN
ANNUAL REPORT 2015
71
DISTRIBUTION OF THE PROFIT ACHIEVED IN THE YEAR 2015
Net profit of financial year 2015
52,268,445.04 lei
▪ Distribution as legal reserve of the reinvested profit
21,517,324.72 lei
▪ Distribution as statutory reserves for the
working capital
17,959,814.52 lei
▪ Distribution as dividends
(gross dividend per share: 0,084 lei)
12,791,305.80 lei
President of the Board of Directors and General Director,
GRIGORE FILIP
Vice-president of Board of Directors and Financial Director,
DORU DAMASCHIN
72
AEROSTAR S.A.

Annual Report 2015

Transcription

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